Market Brushes Off Negative News
Stocks brushed off negative news
and stayed
positive today on the heels of a second-half rally from Monday. The
Conference Board reported that its consumer confidence index fell to 106.4 from
110.3 in May. Economists had expected a rise in the index to 111. Also, the National Association of Realtors reported that sales of existing homes
dropped 0.3% to a 5.75 million-unit rate, just below economist estimates.
At one point in the first half of trading, the
S&P 500
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pulled back. A move and close above the 1000 level would be a good sign for the
technicals. The S&P 500 is maintaining a positive bias.
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The Nasdaq Composite
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started out positive and is trading negative at the midpoint of trading.
The latest economic news also may give the Fed
more reason to delay any increases in interest rates. Today, the Fed began a
two-day meeting. Investors and economists anticipate that the central
bank’s policy makers will leave the target for the federal-funds rate at 1.75%,
and say that risks are balanced between economic weakness and inflation.
Bonds are lower after the economic news from this morning. The September
10-year note
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negative, but weakness in the Treasury market is based more from a movement into
stocks than a reaction to economic data.
The September dollar
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trading mixed in early trading, which has helped the markets trade positive. U.S. dollar has dropped off in the last several weeks, and
yesterday the September euro
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before pulling back. Sentiment around the dollar remains negative, with traders
concerned about the strength of the U.S. economic recovery.
Energizer Holdings
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to the 20-day moving average. ENR is carrying a
3-month relative strength rank of 96 from TradingMarkets.com.
Dollar General
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is beginning to rally after pulling back from the high. DG has a
TradingMarkets.com RS3 rating of 86 and an up trending
ADX of 36.
Ambac Financial
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pullback from high on the daily chart. ABK is holding a
3-month relative strength rank of 92 from TradingMarkets.com.
Amerisource Bergen
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to trendline support. ABC is carrying a
3-month relative strength rank of 82 from TradingMarkets.com.
Yellow Corporation
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rally after pulling back from the high. YELL has a
TradingMarkets.com RS3 rating of 94 and an up trending
ADX of 24.
The S&P 100
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index
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