The Influence Of Gold
The Dow Jones Industrial Average is in
jeopardy of snapping a five-week winning streak on concern that rising borrowing
costs may slow a rebound in the economy and corporate profits. The Dow Jones
Industrial Average
(
$INDU |
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of the day at 10386. It then rallied up, but remains in negative territory.
Hewlett-Packard
(
HWP |
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report that revenue and profit at its services unit was lagging expectations.
Verizon Communications
(
VZ |
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telephone company should reduce short-term debt, which would increase interest
payments. So far this week, the Dow is down 1.2%, trimming its
year-to-date gain to 4.5%.
The S&P 500
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$SPX |
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to 1154.99, as General Electric
(
GE |
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S&P 500 has dropped 1.0% this week, leaving it little changed in 2002.
After putting in a late session rally yesterday,
the Nasdaq Composite Index
(
COMPQ |
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PowerRating) is taking a breather the first half
of the trading day. The Nasdaq is slightly lower thus far. The Nasdaq gained 0.1%, trimming its loss for the year to 4.1%.
April gold
(
GCJ2 |
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296.30, up 3.20. As gold moves upward, it has a positive affect on the PHLX
Gold & Silver Index
(
$XAU.X |
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PowerRating), which is trading higher today. Other
stocks that are influenced by gold are Anglogold
(
AU |
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(
ABX |
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PowerRating)
and Newmont Mining
(
NEM |
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PowerRating), which are all in positive territory.
The PHLX Utility Sector
(
$UTY.X |
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PowerRating) is
positive again today after having a strong day yesterday. Some of the stronger
stocks in the UTY are: Exelon
(
EXC |
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PowerRating), Dominion Resources
(
D |
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PowerRating), American
Electric Power
(
AEP |
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PowerRating), Progress Energy
(
PGN |
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PowerRating) and Public Service
Enterprise
(
PEG |
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PowerRating).
After immediately retreating to the lows at
the opening, the PHLX Semiconductor
(
$PHLX.X |
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PowerRating) has now rebounded and is
positive. Some of the stocks helping push the SOX are: Broadcom
(
BRCM |
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PowerRating),
Advanced Micro Devices
(
AMD |
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PowerRating), KLA-Tencor
(
KLAC |
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PowerRating), Applied Materials
(
AMAT |
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PowerRating)
and Novellus Systems
(
NVLS |
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PowerRating).
The AMEX Pharmaceutical Index
(
$DRG.X |
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PowerRating)
is pulling up from its lows and is in positive territory today. Some of the
stocks helping push the DRG are: Abbott Laboratories
(
ABT |
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PowerRating), Astra Zeneca
(
AZN |
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PowerRating), Johnson & Johnson
(
JNJ |
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PowerRating) and Merck & Company
(
MRK |
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PowerRating).
Dillard’s
(
DDS |
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PowerRating) is trading in a
pullback/Trend Knock-Out. DDS carries a
3-month relative strength rank of 99 along with an uptrending ADX of 48 from
TradingMarkets.com.
Ticketmaster
(
TMCS |
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PowerRating) is breaking out
above resistance with strong volume. TMCS has a
TradingMarkets.com RS3 rating of 91.
It also has an uptrending
ADX of 22.
Apache
(
APA |
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PowerRating) is pulling back from its
recent high. APA holds a
3-month relative strength rank of 82 from TradingMarkets.com.
Advent Software
(
ADVS |
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PowerRating) is tracing out a
triangle. ADVS carries a
3-month relative strength rank of 83 from TradingMarkets.com.
FreeMarkets
(
FMKT |
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PowerRating)
is breaking out above resistance with strong volume. FMKT has a
TradingMarkets.com RS3 rating of 91.
It also has an uptrending
ADX of 22.
U.S. Treasuries fell, driving up companies’
borrowing costs. The yield on the benchmark 10-year bond rose to its highest
level in almost 10 months on growing expectations the Federal Reserve will raise
rates in May or June as the economy expands.
About five stocks have fallen for every four that are up on the New York Stock Exchange
and the Nasdaq Stock Market. Some 560 million shares traded on the Big Board by
noon New York time, down 29% from a week ago.