Has Rate Cut Been Factored In?
Buyers
hit the market today as the major indexes shot up off the opening
bell, then oscillated for most of trading, holding gains into the close. The
rally was broad-based with technology standing out.
The
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) climbed 1.26%Â to
close at 9,441.03; the
S&P 500 [$SPX.X| $SPX.X] rose 1.30%
to 1,101.38; while the Nasdaq
(
$COMPQ.X |
Quote |
Chart |
News |
PowerRating) finished the day up 2.73%
at 1,793.47.
The earnings announcement for
tech bellwether Cisco Systems
will be announced after the close today. This, coupled with the Federal Reserve
Board meeting Tuesday, make for some potentially market-moving events. Today’s
price action is a show of optimism in front of these numbers though as the old
adage goes, “buy on rumor and sell on news.” The Fed Futures pit is
pricing in a 50 basis point cut by Christmas.
NYSE
advancing issues were 2,047,
with up volume at 859,817,000;
declining issues were 1,075,
with down volume at 316,390,000.
Nasdaq advancing issues were 2,135,
with up volume at 1,430,636,000;
declining issues were 1,414 with
down volume at 249,394,000. The VIX
was down 0.31 to 32.09. The TRIN
was down 0.15 to 0.70 . Overall volume was below-average with up volume
outpacing down volume by over 2:1 on the NYSE and 5:1 on the Nasdaq. The Dow was
able to close above its 50-day MA and is poised to test resistance, the S&P
500 closed at it resistance, and the Nasdaq was able to close above its former
resistance mark today.
Top
sectors of the day were the Morgan Stanley Internet Idx
(
$MOX.X |
Quote |
Chart |
News |
PowerRating)
up 5.06% at 11.43 and
the Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) up 4.56%Â
at 575.18.
Losing
sectors of the day were the Gold And Silver Sector Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
down 1.18% at 55.17
and the Natural Gas Index
(
$XNG.X |
Quote |
Chart |
News |
PowerRating) down 0.48%
at 185.51.
Healthcare
company Baxter International
(
BAX |
Quote |
Chart |
News |
PowerRating),
down
5.51% at 46.30,
said its manufacturing of blood-filtering systems for dialysis
machines may have caused the deaths of more than 30 patients.
The
world’s largest razor and blade maker Gillette Co.
(
G |
Quote |
Chart |
News |
PowerRating)
up
0.37%
at 32.25, reported its third quarter income fell 16%, though
sales were better than anticipated. Earnings were 28 cents a share, down from 33
cents a year ago.
Computer
hardware company Hewlett-Packard
(
HWP |
Quote |
Chart |
News |
PowerRating)
down
0.12% at 16.90,
was downgraded by
Merrill Lynch last
Friday based on general economic weakness. The earnings target has been lowered
to 76 cents a share from 82 cents a share.
Entertainment
giant America Online
(
AOL |
Quote |
Chart |
News |
PowerRating), up 4.62% at 33.49, announced a marketing
agreement with Burger King, owned by Diageo
(
DEO |
Quote |
Chart |
News |
PowerRating) up 0.55% at
42.05. The pact enables exclusive online features for Burger King customers,
including sports and music promotions
Airplane
manufacturer Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) up 1.95%
at 35.02,
is the new supplier for Emirates, a Middle East airline, with a $15 billion
order.
Communications
equipment maker Cisco Systems Â
(
CSCO |
Quote |
Chart |
News |
PowerRating)
up
at 17.98, will announce their highly anticipated third quarter earnings
statement after the close today.