Despite The News…
The
markets moved in a narrow range today with the close leaving the
Nasdaq and S&P 500 in the red, while the Dow stayed green. Blue chips were
the strength of the day as the technology sectors were mixed.
The
Dow Jones Industrial Average
(
$INDU.X |
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Chart |
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PowerRating) closed up 0.23%Â %
to 9,851.56. The S&P 500
(
$SPX.X |
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PowerRating) closed down 0.17%Â %
to 1,138.22. The Nasdaq
(
$COMPQ.X |
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Chart |
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PowerRating)
closed down 0.14%% to 1,930.61.
Despite disappointing economic
news, the markets were able to attempt a rally into the close. The Commerce
Department revised its earlier GDP contraction from 0.04% to 1.1%. This is the
largest third quarter decline since the first quarter of 1991 when the
contraction was 2%. Also, a report from the Purchasing
Management Association of Chicago index cited activity fell to a level of 41.1,
down from 46.2 in October. This report is widely considered to be a good
forecast for the National Association of Purchasing Management’s numbers which
come out Monday morning.
Overall
NYSE volume was 1,330,557,000.
NYSE advancing issues were 1,552,
with up volume at 604,975,000;
declining issues were 1,581,
with down volume at 708,591,000.
Overall Nasdaq volume was 1,787,801,000.
Nasdaq advancing issues were 1,772,
with up volume at 816,233,000;
declining issues were 1,892 with
down volume at 956,455,000. The VIX
was down 0.39 to 25.87. The TRIN
was down 0.14 to 1.14. Overall volume came in below average. As the Nasdaq
remains poised to challenge its 200-day MA the Dow and the S&P 500 are just
a few steps behind. This week we saw the rally stall, but the trend is still up.
Top
sectors of the day were the Airline Index
(
$XAL.X |
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Chart |
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PowerRating) up 1.71% to
88.72 and the Gold and Silver Index
(
$XAU.X |
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PowerRating) up 1.68% to 52.57.
Losing
sectors of the day were the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) down
2.66% to 518.96 and the GSTI Software Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) down 2.25% to
173.24.
Semiconductor
equipment maker Novellus SystemsÂ
(
NVLS |
Quote |
Chart |
News |
PowerRating),
down
8.82% to 37.93,
announced that it would not turn a profit for the first two
quarters of next year.
Home
improvement retailer
Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), up 6.32%
to 2.78, said it expects to increase its earnings by 18-20% annually over the
next 12 quarters.
Ford
Motor Co.
(
F |
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Chart |
News |
PowerRating)
up 4.16%
to 19.02 announced it was in talks with Japanese car maker Toyota Motor Corp. to
develop an electric-gasoline hybrid vehicle.
Kraft
Foods Inc.Â
(
KFT |
Quote |
Chart |
News |
PowerRating)
down 1.89% to 33.17 reported
it will shut down two Latin American plants, cut more than 500 jobs, and
consolidate operations to better facilitate its acquisition of cookie-maker
Nabisco.
Consumer paper goods company Kimberly-Clark
Corp.
(
KMB |
Quote |
Chart |
News |
PowerRating)
up 4.82%
to 2.69 said it expects to meet next year’s earnings expectations though it will
close five plants and lay off 2% of its workforce to remedy a drop in demand.
This maker of Kleenex
tissues, Huggies diapers, and Scott toilet paper has felt the effects from the
slump in the hotel and airport
industries.
Canadian cigarette maker Rothmans
Inc
has
made a larger bid for Santa
Fe Natural Tobacco Co, trumping R.J. Reynolds
Tobacco
(
RJR |
Quote |
Chart |
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PowerRating), up 0.95%
to 57.49, by 11% with a bid of $353.7 million.
Software maker Novell
(
NOVL |
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Chart |
News |
PowerRating) up 8.52%
to 4.33 reported fourth-quarter earnings loss of 26 cents a share, compared to a
loss of 11 cents a year ago though remains upbeat over its future.