Indexes Close Near Session Lows; Leading Stocks Also Fall

By PAUL WHITFIELD, INVESTOR’S BUSINESS DAILY 

An attempted rebound failed Monday as the stock indexes sprang off the day’s lows and then sagged in the final 90 minutes.

The Nasdaq and the S&P 500 dropped 1.1% each while the Dow Jones industrial average fell 1%. The NYSE composite lopped off 1.4%.

Volume was lower on both major exchanges, according to unconfirmed numbers.

JPMorgan Chase (JPM) gapped down 3% in volume that was 150% above average. The stock also gapped down Friday, though the loss was 9% and in even stronger volume. Late Thursday, JPMorgan reported a $2 billion loss due to a poor hedging strategy.

Top-rated stocks also were mostly down. On the IBD 50, a proxy for leading stocks, only four issues rose, and all four in meek volume.

Meanwhile some losers retreated in strong volume, including many with a defensive tint.

Discount retailer TJX (TJX) slid almost 4% in more than double its usual volume. The stock closed just under its 50-day moving average. This was TJX’s first close under the line since early October.

TJX is expected to report quarterly results before the open Tuesday. The Street expects a 38% EPS gain to 54 cents a share. Revenue is estimated at $5.75 billion, which would represent a 10% gain.

The retail auto parts group was having a tough day.

O’Reilly Automotive (ORLY) skidded 3% in 57% faster trade. Advance Auto Parts (AAP) plunged 7% in triple volume. AutoZone (AZO) fell 2.5%, though volume was below average.

Industrial supplies retailer W.W. Grainger (GWW) sank for the fourth time in the past five sessions. On Monday, it lost almost 2% in 69% heavier volume.

On Tuesday, big retailers Home Depot (HD) and JC Penney (JCP) report earnings, the same day that key consumer reports come out, including retail sales and the consumer price index.

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