Financials Respond To The Fed
The Fed signaled yesterday that rate increases
are possible by saying weakness and inflation are equal threats to the economy.
U.S. stocks fell on concern rising interest rates may crimp an economic recovery
and hinder a rebound in corporate profit growth.
Financial shares, including J.P. Morgan Chase
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JPM |
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AXP |
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GS |
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Reserve will raise benchmark borrowing costs this year.
The Dow Jones Industrial Average
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$INDU |
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dropped quickly to the lows of the day. The trading has been choppy most of the
morning.
The S&P 500
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$SPX |
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(
BMY |
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PowerRating),
after its Vanlev medication didn’t prove more effective than a generic drug in a
study of heart failure patients.
The Nasdaq Composite Index
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COMPQ |
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to 1855.05, as Intel
(
INTC |
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the chipmaker’s sales will fall from this quarter to next.
Almost two stocks fell for every one that rose on the New York Stock Exchange
and the Nasdaq Stock Market. Some 618 million shares traded on the Big Board by
12:30 p.m. ET, about the same as a week ago.
Take-Two Interactive
(
TTWO |
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back from the high following a thrust to the upside. TTWO is holding a
3-month relative strength rank of 99 from TradingMarkets.com.
Smith
International
(
SII |
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PowerRating) is hitting a two-month high with increasing volume.
SII has a
TradingMarkets.com RS3 rating of 88 and an uptrending
ADX
of 37.
Emmis
Communications
(
EMMS |
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PowerRating) is hitting a two-month high with increasing
volume. EMMS has a
TradingMarkets.com RS3 rating of 95 and an uptrending
ADX of 39.
Digene
(
DIGE |
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PowerRating) is pulling back from its high following a thrust to the upside. DIGE is holding a
3-month relative strength rank of 90 from TradingMarkets.com.
Fortune Brands
(
FO |
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PowerRating)
is hitting a 52-week high after breaking out of an ascending triangle with
strong volume. FO has a
TradingMarkets.com RS3 rating of 72 and an uptrending
ADX of 72.
Volume is still on a slow pace, with market
internals bearish, but slightly improved. NYSE Adv/Dec is 1140/1879, and the
Nasdaq Adv/Dec is 1297/1997.