More Than A Quarter
The fact that Enron no longer trades on the
NYSE doesn’t mean that its presence isn’t felt. Stocks continue to move
lower for a second day on growing concern that companies have been overstating
their profits. International Business Machines
(
IBM |
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100.00 even after saying it will provide more detailed financial reporting.
Citigroup
(
C |
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prospects for rising loan defaults. They accounted for more than a quarter of
the drop in the S&P 500 Index. J.P. Morgan Chase & Co.
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JPM |
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is trading lower after shareholders sued the company for failing to disclose
potential losses from loans to failed energy trader Enron Corp.
Enron undermined investor examination of corporate balance sheets. Enron used
accounting to hide $1 billion of losses in as many as 3,000 partnerships. IBM
could be an example that investors are waiting for companies to get revalued and
explain any questionable accounting entries. Until then, any company suspected
of “Funny Books” could suffer a pullback in stock price.
The S&P 500
(
$SPX.X |
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support at 1080 and resistance at 1100. The Dow Jones Industrial Average
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$INDU |
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has support at 9785 and resistance at 9906, and the Nasdaq
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$COMPQ |
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has support at 1758 with resistance around 1800.
April gold
(
GCJ2 |
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20-day EMA at 293.50. After trading at around 300 for a week, gold is trading
below the support level of 295.30.
Sage Inc.
(
SAGI |
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PowerRating) is moving out of the
triangle we profiled Friday. SAGI is down 1.10 to 24.30 and carries a 3-month
relative strength rank of 14 from TradingMarkets.com
MRO Software
(
MROI |
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PowerRating) is breaking down
below its 50-day moving average on an expansion of its daily range. MROI is
down 3.83 to 22.08 and carries a 3-month
relative strength rank of 97 from TradingMarkets.com.
Mid-Atlantic Medical
(
MME |
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PowerRating) is pulling back
from its high. MME has a TradingMarkets.com
RS3 rating of 95 and an uptrending ADX of 57. MME is trading at 27.67, down
.05.
Ann Taylor Stores
(
ANN |
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PowerRating) is pulling back
from its high following a push to the upside. ANN is currently down 0.87 to
40.81 and is holding a 3-month
relative strength rank of 98 from TradingMarkets.com.