Today’s Message From The TRIN
The
major averages lost ground today with the Federal Bank of St. Louis
president creating some panic with words of caution on home mortgage lenders
Fannie Mae and Freddie Mac. Price action held a downtrend from bell to bell,
with volume coming in well below average with a strong bias to the downside. The
Dow hit a new low for the year, while the S&P 500 and Nasdaq remain just above
their lows made Feb. 13. Standing out today, the TRIN closed at its highest
level since April 9, 2000, in a sign of extreme bearishness. Today is the third
anniversary of the Nasdaq’s all-time high.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -2.22% at 7,568.18. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -2.58% at 807.48. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -2.06% at
1,278.37.
There were no sectors closing
positive today.
Biggest declines were made in
airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), -4.62%, insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating),
-4.30%, gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), -3.70%, and telecoms
(
$XTC.X |
Quote |
Chart |
News |
PowerRating),
-3.42%.
There were no economic releases
for the day.
The Ten Year Note
(
TYH3 |
Quote |
Chart |
News |
PowerRating) was +110 at 117 260.
The US dollar
(
DXH3 |
Quote |
Chart |
News |
PowerRating) was -0.18 at 97.92.
Volume was below
average, with the NYSE coming in at 1,188,292,000
and the Nasdaq at 1,101,548,000.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 3.02, and down
volume over up volume by a 17.86 ratio. Nasdaq declining issues over advancing
issues came in at 2.51, and down volume beat up volume by a 3.62 ratio.
The
VIX was +2.20 at 37.85. The
TRIN was +5.19 at 5.86.
Leading the Dow down were:
SBC Communications
(
SBC |
Quote |
Chart |
News |
PowerRating), -5.56% at 19.35,
AT&T Corp.
(
T |
Quote |
Chart |
News |
PowerRating), -4.05% at 16.80, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), -3.81% at
21.44, American Express
(
AXP |
Quote |
Chart |
News |
PowerRating), -3.59% at 31.88, Walt Disney
(
DIS |
Quote |
Chart |
News |
PowerRating),
-3.43% at 15.18, and Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating), -2.89% at 21.12.
Stocks in the news:
Consumer financial powerhouses Fannie Mae
(
FNM |
Quote |
Chart |
News |
PowerRating),
-6.87% at 58.93, and Freddie Mac
(
FRE |
Quote |
Chart |
News |
PowerRating), -5.92% at 50.80, fell after
Federal Reserve Bank of St. Louis President William Poole recommended that
regulators increase capital requirements for the companies.
Dutch grocery retailer Ahold
(
AHO |
Quote |
Chart |
News |
PowerRating), -8.25% at 3.00, sold off after it was reported the company knew about
potential accounting issues with its US Food Service division.
Conglomerate General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating), -2.83% at 23.61, rose after reporting that the company’s
pension plan remains overfunded.
Toy maker Mattel
(
MAT |
Quote |
Chart |
News |
PowerRating),
-1.85% at 20.61, was given a positive mention in a New York Times article
which cited strength in the company’s fundamentals.
Online travel agent Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating), -2.32% at 68.75, was given a negative mention in a Barron’s
article over the weekend which said the stock may be trading too high with the
recent departure of its CEO, increased competition, and a weak market.
Chemical company DuPont
(
DD |
Quote |
Chart |
News |
PowerRating), -1.47% at 35.47, was upgraded by Bank of America to “buy”
from “neutral.”
Drug maker Forest Labs
(
FRX |
Quote |
Chart |
News |
PowerRating),
-0.41% at 50.80, announced positive findings in its investigational drug to
treat Alzheimer’s disease.
Also in the drug-making
business, AstraZeneca
(
AZN |
Quote |
Chart |
News |
PowerRating), -3.63% at 31.26, was upgraded by UBS
Warburg to “buy” from “neutral.”
Retailer Federated
Department Stores
(
FD |
Quote |
Chart |
News |
PowerRating), -0.55% at 25.15, was given a positive mention in
a Barron’s article which cited strength in the company’s fundamentals
despite an overall weak retail sector.
danielb@tradingmarkets.com