What Traders Think Of These Earnings…
Earnings reports are
causing investors to worry about the already weak economy, with S&P
500
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SPX.X |
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PowerRating) dropping to within 5 points of the five-year low reached in
July. Declines wiped out
early gains sparked by an unexpected drop in the unemployment rate and the SPX has
hit the -1.28 Volatility Band at 800.00.Â
On the last day of the trading week, the
three major indices are back on track to close out a sixth straight losing week.
Some of the big stocks today that are pushing markets lower are: Boeing
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BA |
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PowerRating),
EMC Corp.
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EMC |
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PowerRating), Northern Trust Corp.
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NTRS |
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PowerRating) and
Schering-Plough
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SGP |
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PowerRating), which said third-quarter results were below forecasts.
Going into the next trading week, we will see earnings reports from many
companies. More than three U.S. companies have lowered third-quarter profit
estimates for every one that has raised them, this according to Bloomberg.com.
Analysts expect 5.9% profit growth for the S&P 500 in the third quarter,
down from 17% as of July 1, according to Thomson First Call.
Two stocks fell for every one that rose on the New York Stock Exchange and the
Nasdaq Stock Market. Some 531 million shares traded on the Big Board, up 12% from a week ago.
Financial and health stocks contributed more than 40% of the loss. The
Dow Jones Industrial Average
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$INDU |
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PowerRating) has declined 1.1% to
7555.00 the lows of the day. The Nasdaq Composite Index
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$COMPQ |
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PowerRating)
was trading at the worst levels of the day, a decline of 1.2%.
For the week, the S&P 500 has so far declined 2.8%. The last time it fell
six weeks in a row was in February and March 2001. The Dow has lost 1.6% and the Nasdaq 4%.
Kraft Foods
(
KFT |
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PowerRating) broke above the 50%
retracement level (37.20) with increasing volume.
Amerigroup
(
AMGP |
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PowerRating) is forming a pullback
from the recent high. AMGP holds a
3-month
relative strength rank of 98 from TradingMarkets.com.
Alcon
(
ACL |
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PowerRating) is trading in a running cup
and handle atop the 20-day moving average. ACL carries a
3-month
relative strength rank of 96 from TradingMarkets.com
Nasdaq Breadth
Adv: 873 UpVol: 151194600
Dec: 2194 DnVol: 614976368
Net: -1321 Net: -463781768
NYSE Breadth
Adv: 713 UpVol: 775012
Dec: 2355 DnVol: 8601946
Net: -1642 Net: -7826934