Here’s One Reason Why You May See A ‘Turnaround Tuesday’
The
markets staged a broad-based sell-off, as light volume moved the Dow
and S&P 500 to close below their 50-day EMAs, and the Nasdaq just above this
mark. The news front was on the quiet side, though various downgrades helped to
lower sentiment. Tomorrow wholesale inventories and an FOMC meeting stand as
potential market movers.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -1.99% at 8,473.41. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -2.21% at 892.00. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -3.88% at
1,367.11.
The day’s big winners were
utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating), +0.90%, REIT’s
(
DJR.X |
Quote |
Chart |
News |
PowerRating),
.
The day’s biggest losses were
in Internet
(
$INX.X |
Quote |
Chart |
News |
PowerRating), -10.50%, networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating),
-9.31%, semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), -7.16%, and telecoms
(
$IXTC.X |
Quote |
Chart |
News |
PowerRating),
-6.49%.
There were no economic releases
today.
The 10-year U.S. Note
was +115 at 113 305.
The Dollar was -0.11 at
105.27.
Volume was below
average, with the NYSE coming in at 1,205,892,000 and the Nasdaq at
1,472,931,000.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 2.54, and down
volume over up volume by a 5.94 ratio. Nasdaq declining issues over advancing
issues came in at 2.71, and down volume beat up volume by a 13.19 ratio.
The
VIX was +1.79 at 34.47. The
TRIN was +1.27 at 2.32.
Leading the Dow higher:
Intel Corp.
(
INTC |
Quote |
Chart |
News |
PowerRating), -5.50% at 17.68, JP
Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), -4.78% at 23.26, Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), -4.24%
at 18.03, Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), -3.76% at 23.02, Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), -3.75%
at 36.15, and Microsoft Corp.
(
MSFT |
Quote |
Chart |
News |
PowerRating), -3.49% at 53.53.
Stocks in the news:
Computer hardware giant
International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating), -3.31% at 79.59, was downgraded
by Banc of America to “market perform” from “buy”.
Investment Banks JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), -4.78% at 23.26, and Citibank
(
C |
Quote |
Chart |
News |
PowerRating), -3.75% at 36.15, were
taken down after it was released that the helped Enron conceal debt or avoid
taxes.
Communications equipment maker
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), -5.52% at 39.19, was downgraded by Salomon Smith
Barney to “in-line” from “outperform”. And has had coverage initiated by Merrill
Lynch at “neutral”.
In the retail sector,
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), -2.24% at 51.85, announced that same store sales are
coming in at the low end of their expectations for the holiday period.
Elsewhere in the semiconductor
sector, KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating), -5.54% at 37.31, Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), -7.99% at 13.70, and Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), -7.07% at
16.94.
Drug maker Schering-Plough
(
SGP |
Quote |
Chart |
News |
PowerRating), +5.85% at 22.60, was upgraded by Prudential to “buy” from “hold”.
Bear Stearns downgraded the
following gaming stocks to “hold” from “strong buy” based on the belief that the
stock prices for the group will remain range bound for the next two years:
Activision
(
ATVI |
Quote |
Chart |
News |
PowerRating), -6.21% at 18.12, Midway Games
(
MWY |
Quote |
Chart |
News |
PowerRating),
-15.30% at 5.79, and THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating), -6.76% at 15.84. Also,
Acclaim Entertainment
(
AKLM |
Quote |
Chart |
News |
PowerRating), -16.51% at 0.91, was downgraded by
Stearns to “reduce” from “hold” for the same reason.
Bank of America upgraded the
oil service sector to “overweight” from “market weight”, and has listed the
following stocks as top picks: Patterson UTI Energy
(
PTEN |
Quote |
Chart |
News |
PowerRating),
+1.44% at 31.62, Nabors Industries
(
NBR |
Quote |
Chart |
News |
PowerRating), -1.61% at 36.60, BJ
Services Co.
(
BJS |
Quote |
Chart |
News |
PowerRating), -0.78% at 32.87, Smith International Inc.
(
SII |
Quote |
Chart |
News |
PowerRating),
-1.72% at 33.60, Ensco International
(
ESV |
Quote |
Chart |
News |
PowerRating), -1.12% at 28.10, and
Rowan Cos.
(
RDC |
Quote |
Chart |
News |
PowerRating), -0.68% at 21.73.