Two Reasons For Gold’s Rise
U.S. stocks are lower today on concerns
a
slower than expected recovery in companies’ spending on computer-related
products and a jump in oil prices may stunt a rebound in corporate earnings.
Microsoft
(
MSFT |
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News |
PowerRating) dropped lower after Goldman Sachs said the biggest
software maker will earn less than forecast in its next fiscal year.
Bristol-Myers Squibb
(
BMY |
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Chart |
News |
PowerRating) and
PeopleSoft
(
PSFT |
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PowerRating) tumbled after
giving disappointing profit projections.
The
S&P 500
(
$SPX |
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Chart |
News |
PowerRating) is down 10.39, or 0.9%, to 1136.39. Gains by oil companies including Exxon Mobil
(
XOM |
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News |
PowerRating)
and ChevronTexaco
(
CVX |
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News |
PowerRating) helped limit the decline. The Dow Jones
Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) is lower by 77.64, or 0.7%, to
10,285.96. The Nasdaq Composite Index
(
COMPQ |
Quote |
Chart |
News |
PowerRating) is lower by
37.7, or 2%, to 1824.93.
The S&P 500, up 18% since the three-year low reached last Sept. 21,
slipped 0.1% last week, and the Dow lost 0.2%, the smallest weekly
move for both indexes since June.
June gold
(
GCM2 |
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Chart |
News |
PowerRating) is trading higher today, breaking above its $305.00-an-ounce resistance level. April gold has solid support at $300.00 an ounce. Two
reasons that have brought gold above the $300.00-an-ounce level are the Middle
East tensions and Japan. Gold has been a major beneficiary of portfolio
diversification by Japanese investors worried about their economy and seeking to
protect their wealth. June gold has influenced the PHLX Gold & Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) in a positive way, as well as some of the gold mining stocks,
such as Anglogold
(
AU |
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Chart |
News |
PowerRating), Barrick Gold
(
ABX |
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Chart |
News |
PowerRating), Newmont Mining
(
NEM |
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News |
PowerRating)
and Placer Dome
(
PDG |
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PowerRating).
May crude oil
(
CLK2 |
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Chart |
News |
PowerRating) is breaking out
of an ascending triangle. May crude oil is influencing the PHLX Oil Service
Sector
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), which is trading positive today. Just about every
stock in the OSX is trading positive. Some of the stronger stocks in the sector
are Smith International
(
SII |
Quote |
Chart |
News |
PowerRating), Cooper Cameron
(
CAM |
Quote |
Chart |
News |
PowerRating), Weatherford
Int’l
(
WFT |
Quote |
Chart |
News |
PowerRating) and Tidewater
(
TDW |
Quote |
Chart |
News |
PowerRating). May crude oil is also
influencing the AMEX Oil Index
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) in a positive way. Some of
the oil stocks trading positive today are BP Amoco
(
BP |
Quote |
Chart |
News |
PowerRating), ChevronTexaco
(
CVX |
Quote |
Chart |
News |
PowerRating),
Exxon Mobil
(
XOM |
Quote |
Chart |
News |
PowerRating) and Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating).
The Amex Biotechnology Index
(
BTK |
Quote |
Chart |
News |
PowerRating) was
positive in the early part of trading, but now has dropped into negative
territory. Some of the stocks helping push the Biotech Index are Cephalon
(
CEPH |
Quote |
Chart |
News |
PowerRating),
IDEC Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating), Biogen
(
BGEN |
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Chart |
News |
PowerRating) and Genentech
(
DNA |
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Chart |
News |
PowerRating).
Tidewater
(
TDW |
Quote |
Chart |
News |
PowerRating)
is breaking out of an ascending triangle with increasing volume. Tidewater has a
TradingMarkets.com RS3 rating of 81
and an uptrending
ADX
of 29.
Anthem {ATH|ATH] is moving out of a triangle.
The stock carries a
3-month relative strength rank of 83 from TradingMarkets.com.
Advanced Energy Industries
(
AEIS |
Quote |
Chart |
News |
PowerRating) is
pulling back from its high. AEIS is holding a
3-month relative strength rank of 90 along with an uptrending
ADX of 30 from TradingMarkets.com.
L-3 Communications [LLL|LLL} is moving above a
double top. LLL has a
3-month relative strength rank of 87 from TradingMarkets.com.