After Thrust Comes Consolidation
Stocks are
hanging around the flatline this midday.
After yesterday’s thrust and subsequent reversal, the major indices are flipping
back between green and red. Today marks the one-year anniversary of the Dow’s
six-year low. On Oct. 10, 2002, the index hit an intraday low of 7197. The
blue-chip index is leading the pack today, thanks to new 52 week highs in:
American Express
(
AXP |
Quote |
Chart |
News |
PowerRating), Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), ExxonMobil
(
XOM |
Quote |
Chart |
News |
PowerRating), General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), and 3M
(
MMM |
Quote |
Chart |
News |
PowerRating).
The broader S&P is flat as it
struggles to get back above the 1040 level. Meanwhile, the Nasdaq is continuing
to hold above the 1900 level after Deutsche Bank upgraded Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) from
“hold” to “buy”. Yesterday’s action and reversal in the Nasdaq Composite does
have the tech-heavy index forming a potential broadening top formation. After
yesterday’s wide range bar, it’s natural for prices to consolidate as traders
decide on the market’s future direction.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is +0.10% at 9690.31. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
is +0.02% at 1038.95. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is +0.03% at 1912.66.
The day’s leading sectors are
Gold Bugs
(
$HUI.X |
Quote |
Chart |
News |
PowerRating), +1.39%, Gold & Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating),
+0.92%, Energy
(
$DXE.X |
Quote |
Chart |
News |
PowerRating), +0.82%, Oil
(
$XOI.X |
Quote |
Chart |
News |
PowerRating),
+0.72%,and Healthcare
(
$HMO.X |
Quote |
Chart |
News |
PowerRating), +0.59%.
Weak today are Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), -2.14%, Internets
(
$INX.X |
Quote |
Chart |
News |
PowerRating), -1.37%, Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), -1.25%, Internet Commerce
(
$ECM.X |
Quote |
Chart |
News |
PowerRating), -0.85%,
and Insurance
(
$INSRX.X |
Quote |
Chart |
News |
PowerRating), -0.83%.
In economic news, Producer
Price Index in September rose by 0.3% versus an expected rise of 0.1%. The
Core PPI September came in flat versus an expected rise of 0.1%. Lastly the
Trade Balance in August came in at -$39.2B compared to an expected
-$41.5B.
The 10-year U.S. Note
is +160at 112 145.
The dollar is -0.57 at
91.76.
Gold is +4.00 at 373.80.
Crude Oil is +1.34 at
32.35.
Volume is 815,000,000 on
the NYSE, and 1,170,000,000 on the Nasdaq.
Market breadth is mixed,
with NYSE advancing issues over declining issues by 1.05 and up over down volume
by 1.01; Nasdaq declining issues over advancing issues at 1.50, and up volume
over down volume at 1.31.
Top Dow stocks are:
Eastman Kodak [EK|EK],
+2.35 at 22.15, Intel [INTC|INTC],
+2.08% at 30.39, General Motors [GM|GM],
+1.36% at 42.98, American Express
(
AXP |
Quote |
Chart |
News |
PowerRating),
+1.23% at 47.69, and Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), +1.14% at 49.55.
Stocks in the news:
Semiconductor equipment maker
Cree
(
CREE |
Quote |
Chart |
News |
PowerRating) is higher by more than 7% after the company announced
that its former CEO Eric Hunter will dismiss his $3 billion suit against his
former employer. The long standing suit accused Cree of unfair or deceptive
trade practices, as well as securities fraud.
Deutsche Bank upgraded Intel
(
INTC |
Quote |
Chart |
News |
PowerRating). The firm raised its rating on the world largest semiconductor
company due to its “attractive” valuation in an otherwise expensive sector.
Deutsche Bank also upped its price target from $26 to $35. Shares of Intel are
up nearly 2%.
Airline issues
(
$XAL.X |
Quote |
Chart |
News |
PowerRating)
are lower today after UBS lower its rating on discount airliners America West
(
AWA |
Quote |
Chart |
News |
PowerRating), Air Tran
(
AAI |
Quote |
Chart |
News |
PowerRating), and Jet Blue
(
JBLU |
Quote |
Chart |
News |
PowerRating). Due to
concerns about profit margins and valuation, UBS lowered America West from “buy”
to “neutral”, and both Jet Blue and Air Tran from “neutral” to “reduce”.
Dow component General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating) is lower by 2.4% after the company reported a decline in
quarterly results. The conglomerate giant earned 36 cents a share, in line with
estimates, but the results were 13% lower than last year’s levels. GE blamed the
shortfall on lower aircraft and gas turbine engine sales, as well as a $372
million accounting charge.
Monster Worldwide
(
MNST |
Quote |
Chart |
News |
PowerRating)
is lower by more than 5% after the company announced that it has filed with the
SEC for a public offering of 6 million common shares. The online job-search firm
intends to use the proceeds for general corporate purposes as well as for
potential investments.
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com