What These Two Milestones Show

The Dow is headed toward its fifth-straight losing week, and the Standard &
Poor’s 500 Index is very close to its second-largest quarterly loss in 12 years.
These declines are showing that investors are concerned that the expected
rebound in corporate earning may fail to happen.

The economy grew at an annual rate 1.3% in
the spring, a performance that was slightly stronger than previously thought but
which still marked a dramatic slowdown from the beginning of the year.

The Dec. 10-year Treasury
note

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is headed for a sixth week of gains as some investors
anticipated a weak economic recovery will prompt the Federal Reserve to cut
interest rates before year-end. The 30-year bond for Dec.
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is
also higher on the day.

At the midpoint of today’s trading, the
three major indices are lower. The Dow Jones Industrial Average
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and the Standard & Poor’s 500 Index
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are trading lower
after Philip Morris
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and Wyeth
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reduced profit
forecasts and a pair of Wall Street analysts lowered ratings on General
Electric

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.

The Nasdaq Composite
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is
trading just below the session and weekly highs.

The of the sectors that are positive today are:
Health, Energy, Biotech
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, Semiconductors
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, Software
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. The weaker sectors are:
Drug

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, Consumer, Defense, Insurance,
Networking
, Telecom, Airline
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, Paper
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,
Gold
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and Broker/Dealer
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Cost Plus
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is rallying out of an inverted head and shoulders with increasing volume to hit
a 90-day high. CPWM has a

TradingMarkets.com RS3 rating of 86
.

Cooper
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is close to hitting its 52-week high. COO has increasing volume today and holds
a

TradingMarkets.com RS3 rating of 97
.
Cooper also has an up trending


ADX
of
28.

Abbott Labs
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is pulling back from its
recent high following its rebound and thrust off the 50-day moving average.

ABT is holding a

3
-month
relative strength rank of 96
from TradingMarkets.com.

Community Health
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is pushing up to hit a 90-day high with increasing volume. CYH has a

TradingMarkets.com RS3 rating of 91
.

Take-Two
Interactive
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is hitting a 52-week high with increasing volume.
TTWO has a

TradingMarkets.com RS3 rating of 98
and an up trending

ADX
of 28.

Hovnanian
Enterprises
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is rallying stronger in the early goings. HOV has
strong volume for this time of the day. HOV has a

TradingMarkets.com RS3 rating of 81
.

Nasdaq Breadth

Adv: 1092 UpVol: 3592352

Dec: 1908 DnVol: 3544304

Net: -816 Net: +48048

NYSE Breadth

Adv: 978 UpVol: 20031964

Dec: 2125 DnVol: 64403070

Net: -1147 Net: -44371106