The Mounting Signs
Lucent Technologies
(
LU |
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PowerRating) and Nokia
(
NOK |
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PowerRating)
cut sales forecasts, raising concern that a rebound in telecommunications
companies’ profits will take longer than some investors expected. This news
caused U.S. stocks to fall in early trading. The Dow Jones Industrial Average
(
$INDU |
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PowerRating) began to rally and go into positive territory around 1:30
PM EST.
The S&P 500
(
$SPX |
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PowerRating) fell at the opening with
computer-related and telecommunications shares accounting for about 52%
of the loss. The Nasdaq Composite
(
COPQ |
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News |
PowerRating) dropped 38.04, or 2.0%, to 1891.45.
Today’s declines mark a setback for benchmark indexes after the Dow rose
yesterday to a nine-month high and the S&P 500 gained 7.0% in the past 11
sessions amid mounting signs the recession is ending.
Government reports showing sales at U.S. wholesalers had the largest gain in 19
months in January and inventories dropped to a two-year low still haven’t
translated into better corporate earnings, and share prices may already reflect
much of the expected rebound, some investors said.
April gold (GCJ2)
is trading higher today at 293.90. Gold has broken above today’s R2 pivot
point (292.83). Gold influences the movement of the PHLX Gold & Silver Index
($XAU.X)
and some of the gold mining stocks, such as Anglogold (AU),
Barrick Gold (ABX)
and Newmont Mining (NEM),
all of which are trading higher today.
The Oil Index ($XOI.X)
is showing strength again today. After selling off on the open, the index
has rallied off the bottom and is now trading at new highs, up 1.93 at 557.20.
Some of the stocks setting up from the index include: Sunoco (SUN)
trading in an ascending triangle at its high, Total Fina SA (TOT)
breaking out of an intraday triangle, and Phillips Petroleum (P)
trading in an intraday ascending triangle.
BJ Services
(
BJS |
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News |
PowerRating) is pulling back to its 20-day moving average. BJS is carrying a
3-month relative strength rank of 83 from TradingMarkets.com.
Activision
(
ATVI |
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News |
PowerRating)
is pulling back from the high. Support is at 30.61. Activision has a
TradingMarkets.com RS3 rating of 89 and an uptrending
ADX of 30.
SangStat Medical
(
SANG |
Quote |
Chart |
News |
PowerRating) is breaking out
to new highs on an expansion of its daily range. SANG carries a
3-month relative strength rank of 83 from TradingMarkets.com.
Black and Decker
(
BDK |
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Chart |
News |
PowerRating) is rallying out of
the pullback we profiled Monday. BDK is holding a
3-month relative strength rank of 86 and an uptrending ADX of 51 from
TradingMarkets.com.
Alliant Techsystems
(
ATK |
Quote |
Chart |
News |
PowerRating) is trading in a
small triangle at the level of its recent high. ATK carries a
3-month relative strength rank of 81 along with an uptrending ADX of 45 from
TradingMarkets.com.