Stocks Mixed, Apple Drags Tech Sector Lower

Industrial and financial stocks did well on Friday, although Apple Inc, (AAPL) dragged the tech sector lower.
 
The second trading day of 2014 brought a mixed bag of results as the financial and industrial sectors had a great day, while the tech sector was dragged down by Apple’s 2.20 percent drop (AAPL). Small cap stocks had a good day and the S&P 500 took a hard fall during the last 20 minutes of the session to finish just 0.03 percent in the red, closing at 1,831.37 compared to Thursday’s close at 1,831.98. The relatively calm trading day sent the Chicago Board Options Exchange Volatility Index (VIX) falling 3.30 percent to 13.76.
 
The Dow Jones Industrial Average (DIA) picked up 28 points to finish Friday’s trading session at 16,469 for a 0.17 percent advance. The S&P 500 (SPY) dipped 0.03 percent to close at 1,831.
 
The Nasdaq 100 (QQQ) dropped 0.70 percent to finish at 3,538. The Russell 2000 (IWM) climbed 0.47 percent to end the day at 1,156.
 
In other major markets, oil (USO) sank 1.40 percent to close at $35.75.
 
On London’s ICE Futures Europe Exchange, February futures for Brent crude oil declined 81 cents (0.75 percent) to $106.97/bbl. (BNO).
 
February gold futures advanced $11.50 (0.94 percent) to $1,236.70 per ounce (GLD).
 
Transports were speeding over clean pavement on Friday, as the Dow Jones Transportation Average (IYT) advanced 0.65 percent.
 
In Japan, the stock market was closed for holiday (EWJ).
 
Stocks sank in China after the National Bureau of Statistics reported that the China’s “official” non-manufacturing PMI fell to 54.6 percent in December from November’s 56.0 percent. A reading above 50 indicates expansion. The Shanghai Composite Index dropped 1.24 percent to 2,083 (FXI). Hong Kong’s Hang Seng Index sank 2.24 percent to 22,817 (EWH).
 
Stocks advanced in Europe after Spain’s Labor Ministry reported that the nation’s number of unemployed workers declined by 107,570 in December. Because Spain’s unemployment rate is exceeded only by the unemployment rate of Greece, the good news was received as a signal that the Eurozone economy is strengthening. The Euro STOXX 50 Index advanced 0.47 percent to 3,074 on Friday – climbing further above its 50-day moving average of 3,035. Its Relative Strength Index is 56.27 (FEZ).
 
Technical indicators revealed that the S&P 500 remained above its 50-day moving average of 1,792 after dipping 0.03 percent to finish Friday’s session at 1,831.37. Its Relative Strength Index slipped from 60.88 to 60.53. The MACD is dropping toward the signal line, which would suggest that the S&P could continue its decline during the immediate future.

On Friday, three sectors advanced and six sectors declined. The technology sector took the hardest hit, falling 0.48 percent.
 
Consumer Discretionary (XLY):  -0.27%
 
Technology:  (XLK):  -0.48%
 
Industrials (XLI):  +0.27%
 
Materials: (XLB):  -0.24%
 
Energy (XLE):  -0.37%
 
Financials: (XLF):  +0.69%
 
Utilities (XLU):  -0.32%
 
Health Care: (XLV):  +0.24%       
 
Consumer Staples (XLP):  -0.19%
 
Bottom line:  The second trading day of 2014 was relatively uneventful, although Apple’s 2.20 percent drop took its toll on the Nasdaq as well as a number of other tech sector indices, where it is a heavily-weighted component.  
 
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