What Must Happen Before Markets Change Course…
A slew
of negative news kept sentiment down, as the Dow hit a fresh
four-year low. Until the markets can shrug off bad news, there’s little reason
to believe the markets will change course. The major indexes sold off in early
trading where the day’s lows were hit by 10:30 am ET, then trended higher for
most of the session, though failed to close well.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -142% at 7591.58. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -1.46% at 815.26. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -2.27% at
117193.
The biggest gainers on the day
were gold and silver
(
$XAU |
Quote |
Chart |
News |
PowerRating), +1.64% at 69.74, utilities
(
$UTY |
Quote |
Chart |
News |
PowerRating),
+1.00% at 252.23, and biotechnology
(
$BTK |
Quote |
Chart |
News |
PowerRating), +0.80% at 2.57.
The biggest losers of the day
were Internet
(
$INX |
Quote |
Chart |
News |
PowerRating), -5.72% at 56.50, retail
(
RTH |
Quote |
Chart |
News |
PowerRating),
-4.54% at 71.02, and computer tech $XCI.X|$XCI], -3.91% at 418.86.
The big gainers on the Dow were J.P. Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating),
+3.54% at 18.99, Allied Capital
(
ALD |
Quote |
Chart |
News |
PowerRating), +2.52% at 21.89, and
Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating), +2.48 at 38.80.
Leading the Dow down were
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), -4.99% at 13.89, after it received a negative comments in
a New York Times article which cited Google will not be using its new
Itanium 2 chip, AT&T Corp
(
T |
Quote |
Chart |
News |
PowerRating), -4.45% at 12.01, and Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating),
-3.90% at 49.24, lowered its September guidance, with sales expected near the
low end of a 4%-6% range.
U.S. Treasury Bonds
closed up ’17 at 114 ’08.
In economic news, the
Chicago PMI disappointed with a reading of 48.1 vs. an expected 53.0.
Volume was slightly above
average at 1,672,788,000
on the NYSE, and 1,657,311,000
on the Nasdaq.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.21, and down
volume over up volume by a 2.08 ratio. Nasdaq declining issues over advancing
issues came in at 1.22, and down volume beat up volume by a 4.10 ratio.
The
VIX was +1.43 at 44.57. The
TRIN was -0.89 at 1.71.
Stocks in
the news:
In the retail sector,
Federated Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating), -5.55% at 29.44, cut its same-store
sales for the second time this month, and also JC Penney
(
JCP |
Quote |
Chart |
News |
PowerRating),
-9.54% at 15.92, lowered its September forecast.
Drugstore giant Walgreen’s
(
WAG |
Quote |
Chart |
News |
PowerRating), -9.23% at 30.76, missed its fourth-quarter earnings by a penny, with
profits of 24 cents per share.
Conglomerate General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating), +0.73% at 24.65, had its earnings outlook reduced by
Merrill Lynch with a new price target of $28 from $35.
Drug maker Bristol Myers
Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) -2.81% at 23.80, had its estimates cut for the next four
years by SG Cowen, due to reduced estimates in sales.
Biotech company Gilead
Sciences
(
GILD |
Quote |
Chart |
News |
PowerRating), -0.08% at 33.53, had coverage initiated by First
Albany at “buy” with a price target of $40.
Defense stock Raytheon
(
RTN |
Quote |
Chart |
News |
PowerRating),
-6.02% at 29.30, received a downgrade from Thomas Weisel to “market perform”
from “attractive.”
Software and programming
company Network Associates
(
NET |
Quote |
Chart |
News |
PowerRating), -6.42% at 10.63, was downgraded by
Wachovia Securities to “buy” from “strong buy.”