Is market just tired, or is it something worse?

As gold and silver soar, the Dow and S&P 500 fall back from their new highs. Apple fuels the Nasdaq. Here are six reasons the market couldn't add to Wednesday's gains.

By Charley Blaine Sep 19, 2013 6:31PM
Stock market report © CorbisIt often happens after a big convulsive rally. The stock market doesn't follow through with another big gain.

It happened Thursday.

Stocks mostly fell back. Crude oil (-CL), but gold (-GC) and silver (-SI) soared on the assumption that the dollar will fall after the Federal Reserve's Wednesday decision not to taper its bond buying.

Interest rates were up slightly. The dollar was mixed.

Color it tired. Color it a touch worrisome, because there's nothing more bullish for investors than a big rally after a rally that pushes the market to new highs.

The Dow Jones industrials ($INDU) dropped back 40 points to 15,637. The Standard & Poor's 500 Index ($INX) slipped 3 points to 1,722. The Nasdaq Composite Index ($COMPX), however, rose 6 points to 3,789.

Here are six things to know about the market after Thursday:

The love of all things Boeing continues
Aerospace giant Boeing (BA) pushed higher, ending up 64 cents to $119.04. It hit an all-time high of $120.38. As Boeing hit a new high, so did United Technologies (UTX). It reached $112.46 before falling back to $112, up 99 cents. The reason is that investors believe the 787 Dreamliner will be a big hit, especially the stretched version that had its first flight on Wednesday. But even as Boeing and United Technologies gained, only nine Dow stocks were higher.

Apple continues to influence the Nasdaq and Nasdaq-100 indexes heavily
Thursday was the one-year anniversary of Apple's (AAPL) peak close of $702.10. Despite the flood of negative analyses about Apple the company, the iPhone and whatever else, the stock jumped $7.62 to $472.30. Because of Apple's $429-billion market capitalization, that gain was good enough to contribute 6.4 points to the Nasdaq-100 Index ($NDX) -- slightly more than the 6.3-point gain the index itself enjoyed. Apple is down 32.7% from that year-ago peak.  It is, however, up 22.6% from its bottom on April 19.

Stocks are close to being overbought
The Nasdaq is trading at 13.2% over its 200-day moving average. Its relative-strength index, a measure of momentum, is at 71. Above 70 is a signal a market is toppy. The Dow's RSI is nearly 71. The S&P 500's is 70.2. Overbought does not mean in danger of crashing, however.  The averages are also trading above their 50-day moving averages, a signal of investor confidence.

Interest rates barely moved -- but may yet
The 10-year Treasury yield was 2.748% on Thursday, up from Wednesday's 2.708% and down from nearly 3% earlier this month. The yield collapsed on Wednesday after the Fed decided not to taper. But investors took profits on housing and housing-related stocks amid some skepticism on long rates will remain low.

That's a big reason why Ryland (RYL) dropped $1.14 to $41.64. Whirlpool (WHR) was off 10 cents to $149.71.

A criticism of rates as we know them is this from money manager Ken Fisher: The Fed should let longer-term rates rise because that will encourage more bank lending. Fisher might not say this exactly, but he might be thinking it, too: Higher rates means higher profit, and banks would be able to grow earnings without having to shed so many staff.

Gold and precious metals soars

In New York trading, gold jumped $61.70, or 4.7% to $1,369.30 an ounce. That was the biggest one-day gain since Nov. 2, 2009, when gold jumped $113.70 to $1,153.40 an ounce. The gain was the sixth largest since futures trading began in 1980. Why? The dollar fell on Wednesday after the Federal Reserve announcement and moved little on Thursday. And there's chatter a result of the Fed decision will be more inflation. Under that scenario, gold re-assumes its traditional role as an inflation hedge.

Crude oil falls in New York and London
Light sweet crude for November delivery settled at $105.86 a barrel, down $1.42.  Brent crude was trading at $108.77, down $1.83. The reflects the markets perception that tensions over Syria are winding down. The national average pump price of gasoline was $3.494 a gallon, according to AAA's Daily Fuel Gauge Report, down slightly from Wednesday. The decline was 17th in a row. Gasoline prices are coming down because refiners are switching from summer blends to winter blends. And people drive less starting in the fall. Energy stocks were mostly lower. Exxon Mobil (XOM) dropped 30 cents to $89.28.

More from Top Stocks
71Comments
Sep 19, 2013 6:58PM
avatar
Obozo and Big Ben walk off into the sunset as a Nation is left in debt inflation and ruin.
Sep 19, 2013 7:32PM
avatar
why such expectations that te market will just keep going up?  the whole thing is a house of cards, i am not a wharton school grad but found out how to make significant $$ trading  in gold (dust / nugt)  with a high degree of success.  nothing complicated.,, point being---there is no point to today's stock market if somebody w my background can succeed. the only thing pumping up the market is hard working peoples 401 & 403's.  it is all smoke and mirrors. all cyclical and we are over due for at least a  15% correction,  the ones hit will be the working class,  the one's ,making the bucks are the traders and their firms. all horse $hit.
Sep 19, 2013 8:44PM
avatar
It´s just that there are no real investors in the market, only a few manipulators backed by Bernanke´s policies. Money printing has scared away legitimate investors.
Sep 19, 2013 6:57PM
avatar
It can`t go up every day.It`s up 7,200 points in 56 months.
Sep 19, 2013 8:05PM
avatar
Traders take profits today ... and we learn 14 million Americans go hungry ... traders get fat, average Americans go hungry. Are we headed to 3rd world status?  The food stamp President leaves a shocking legacy
Sep 19, 2013 7:44PM
avatar
The market is not tired; it's merely coming up for air after a long and intense makeout session with Ben Bernanke. 
Sep 19, 2013 10:22PM
avatar

yes - it's something worse ... marc faber calls it "QE INFINITY" as the Fed is running scared and boxed into a corner. 

 

yellen?  she'll make bernanke look like a piker when it come to printing money and turning to negative real interest rates.  these Fed bankers are actually former professors and academics who have turned into money-printing zombies ...

Sep 19, 2013 7:26PM
avatar
The markets overbought and all the Fed did was delay the inevitable.  However, if we like Japan take another 5 years, until 2018, to get out of this mess than the Fed is going to have to say Uncle real quick.
Sep 20, 2013 5:33AM
avatar
If interest rates had normalized to reality, Corporations wouldn't be leveraged up to engage in Massive Yearly Stock buybacks. The Stock Markets would be much lower. So fact is, Uncle Ben and the Global FEDS are the facilitators of these actions Globally.

Is the stock market tired? You say that now after just one day of trading? I wonder if folks that write these articles are just trying to be the next famed soothsayer of the exact Day, the next Epic Bear Market begins. It will begin when it does, no need to be the one that picks any given date.

Rick Santelli, when he's not spilling his political bias, he and I tend to agree on the FEDS actions. I think it's safe to state the he and I both believe that eventually the FEDS will lose control of Interest Rates and thus lose control of their number one objective, pump priming the Stock Markets. Once that happens, and no I have no idea when, all heck will break loose. And it will be Epic, for all the wrong reasons.

Sep 20, 2013 8:12AM
avatar
Get a grip the US is going the way of england everyone ran from them to us now everyone is heading to Russia or china .The good ole days are gone .
Sep 19, 2013 7:33PM
avatar
If things get bad enough, the FED will just have to double down on that 85 billion a month..
Sep 20, 2013 8:22AM
avatar
The ONLY reason stocks were up this week was because the fed did not start the long overdue tapering.
Sep 19, 2013 10:36PM
avatar
btw ... the only thing ken fisher has in between those big ears is a deep voice .... 
Sep 20, 2013 10:26AM
avatar
Quick question? To the average middle class swinging **** how in the hell does a fatter 401k effect their everyday life?   Can an inflated 401k help pay for braces for a child,put tires on a car,repair a house roof,fix a transmission,pay the utility bills,feed a hungry family after being laid off... What a f****ng joke!  
Sep 20, 2013 9:45AM
avatar
Hell if 85 billion a month is good bump it up to 185 billion.
Sep 20, 2013 11:09AM
avatar
FIRE HELICOPTER BEN. He is in league with BILLIONAIRES.   
Sep 20, 2013 10:55AM
avatar
EX REPUKE

AND THOSE PEOPLE WHOSE JOBS WERE SHIPPED TO CHINA  HAVE NO BULL TO RUN

MR.1% er
Sep 20, 2013 12:56PM
avatar
I don't know whether a corrupt system like Wall Street can get tired!  They react to all kinds of lies, b/s and all the meaningless news of the day so whether you would say they are tired from that who knows. I myself think with all the deceptive methods they use to swindle/make money for their clients that their noses must be so large (Pinocchio) that they must be head/top heavy!!!!! If that is making them tired then perhaps they need to turn over a new leaf.  (HA, HA, HA)
Sep 19, 2013 11:59PM
avatar
Well that just tears it....Now I know that I'm not going to subscribe to KF's Newsletter...Or download anything from his group....Thanks for the tip...
Sep 20, 2013 2:28PM
avatar
The DOW is down for the day. I bet Mirhaydari is writing his "end of the world" article right now. I'll get published and featured just as the market is up for the day on Tuesday. That guy has the worst luck ever.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.