Evidence Of The Rebound
After showing nice strength last week, the
Nasdaq Composite Index
(
$COMPQ |
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PowerRating) is pulling back to test its support at
1900. Investors speculated the index’s 12% jump over the past two
weeks reflects overly optimistic expectations for earnings growth. Volume is
lighter for this time of the day, with Intel
(
INTC |
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Systems
(
CSCO |
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The S&P 500
(
$SPX |
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the terrorist attacks in New York and
Washington. Software, computer networking companies, and homebuilders have
led the gains.
The index jumped 6.8% in the past two weeks amid mounting evidence an
economic rebound is taking hold. With the index changing hands for 22 times
forecast profit, 17% higher than in September, some investors are
speculating stock prices already reflect gains from an economic rebound.
The Dow Jones Industrial Average
(
$INDU |
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PowerRating) is trading in a tight
range with lighter-than-normal volume for this time of the day.
The AMEX Oil Index
(
$XOI.X |
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PowerRating) is trading higher today at 545.54, up
7.20. Some of the stocks pushing the index higher today are: Amerada Hess
(
AHC |
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BP Amoco
(
BP |
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(
CVX |
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PowerRating), Exxon Mobil
(
XOM |
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Royal Dutch Petroleum
(
RD |
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PowerRating).
The PHLX Bank Sector Index
(
$BKX.X |
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PowerRating),
is one of the stronger sectors on the day. Some of the stocks
helping push the BKX are JP Morgan Chase
(
JPM |
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PowerRating), Bank One
(
ONE |
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Bancorp
(
FITB |
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(
BK |
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Northern Trust
(
NTRS |
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The GSTI Software Index
(
$GSO.X |
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PowerRating) is
trading higher today. Stocks helping push the index higher are ISS
Group
(
ISSX |
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(
INTUI |
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PowerRating), Electronic ARTS
(
ERTS |
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PowerRating), Check Point
Software
(
CHKP |
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(
CA |
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(
ADSK |
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The Software Index is trading at 176.35, up 1.70.
The PHLX Utility Sector
(
$UTY.X |
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PowerRating) is
slightly higher today, trading at 333.25, up 1.10. Some of the stocks helping move
the index are: Exelon
(
EXC |
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PowerRating). Firstenergy
(
FE |
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PowerRating), FPL Group
(
FPL |
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and Edison International
(
EIX |
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SPX Corp.
(
SPW |
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PowerRating) is pulling back from its
high in the midst of its recent uptrend. SPW carries a
3-month relative strength rank of 80 from TradingMarkets.com.
AMR Corp.
(
AMR |
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PowerRating) is trading in a triangle
at its recent high. AMR carries a
3-month relative strength rank of 83 from TradingMarkets.com.
RARE Hospitality
(
RARE |
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PowerRating) is staging an
expansion breakdown and apparently failing from a high level inverted head-and-shoulders. RARE is holding a
3-month relative strength rank of 85 from TradingMarkets.com. The stock
missed Q4 earnings estimates last Thursday, and insiders reportedly sold more
than 80,000 shares in January and February.
Mercury Interactive
(
MERQ |
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PowerRating) is moving over
a double top. MERQ is up 1.48 to 40.46 and is carrying a
3-month relative strength rank of 74 from TradingMarkets.com.
Sallie Mae
(
SLM |
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PowerRating)) is rebounding off the
20-day moving average. SLM is carrying a
3-month relative strength rank of 35 from TradingMarkets.com. SLM has risen
nearly 25% from its January low.
Smith International
(
SII |
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PowerRating) is rallying
on a pullback from the high. On Friday it tested its support at around 64.34.
SII has a
TradingMarkets.com RS3 rating of 91 and an uptrending
ADX of 37.