Why Stocks Are Positive Now
Stocks are positive in the first half of
trading after General Motors
(
GM |
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PowerRating) and Lowe’s
(
LOW |
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PowerRating) said
business is picking up and an industry report showed home sales climbed to a
record pace in January, showing that consumer spending is buoying a rebound in
corporate profits.
The Dow Jones Industrial Average
(
$INDU |
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PowerRating) rallied up and climbed
111.20, or 1.1%, to 10,079.35, erasing its loss for the year. The Dow is
in a trading range at this hour. Caterpillar
(
CAT |
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PowerRating) led the advance
after the chief executive of the largest maker of heavy machinery told Barron’s
it may beat first-quarter profit expectations.
The Nasdaq Composite Index
(
$COMPQ |
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PowerRating) is trading at the highs of the
day. The Standard & Poor’s 500 Index
(
$SPX |
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PowerRating) advanced 12.01, or 1.1%, to 1101.85 and is in a trading range. The S&Ps are being led by Intel
(
INTC |
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PowerRating) and General Electric
(
GE |
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PowerRating). Signs the economy is
emerging from the recession took the limelight away from corporate accounting
and debt concerns that have pushed the S&P 500 down 4.3% so far this
year. The Nasdaq has dropped almost 11%.
The Morgan Stanley Consumer Index
(
$CMR.X |
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PowerRating)
continues to move higher today. It has support at 577.00 and overhead
resistance at 590.00. The CMR Index is on the
TradingMarkets.com Strongest Sectors of the Last 5 days list. Some of the
stocks helping push the CMR up are Emerson Electric
(
EMR |
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PowerRating), Grainger
(
GWW |
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PowerRating),
Automatic Data Processing
(
ADP |
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PowerRating), Walgreen
(
WAG |
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PowerRating) and Proctor &
Gamble
(
PG |
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PowerRating). The CMR Index is trading at 585.16 up 2.99.
The AMEX Oil Index
(
$XOI.X |
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PowerRating) is breaking out above its 520 resistance line. The AMEX Oil
Index is on the
TradingMarkets.com Strongest Sectors of the Last 5 days list. Some of the
stocks helping push the XOI up are Unocal
(
UCL |
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PowerRating), Total Fina
(
TOT |
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PowerRating),
Exxon Mobil
(
XOM |
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PowerRating), Chevron Texaco
(
CVX |
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PowerRating) and BP Amoco
(
BP |
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PowerRating).
The XOI is trading at 522.91 up 3.23.
The PHLX Oil Service Index
(
$OSX.X |
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PowerRating) is
breaking out of an ascending triangle. The Oil Service Index is on the
TradingMarkets.com Strongest Sectors of the Last 5 days list. Some of the
stocks helping push the OSX up are Smith International
(
SII |
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PowerRating),
Schlumberger
(
SLB |
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PowerRating), Cooper Cameron
(
CAM |
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PowerRating), Weatherford
(
WFT |
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PowerRating), and
Tidewater
(
TDW |
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PowerRating). The OSX is trading at 93.29 up 2.46.
L-3 Communications
(
LLL |
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PowerRating) is starting to
pull back after a move higher. LLL is holding a
3-month relative strength rank of 95 with and uptrending
ADX of 46 from TradingMarkets.com.
Wet Seal
(
WTSLA |
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PowerRating)
is breaking out of a narrow sideways channel.
Wet Seal has a TradingMarkets.com RS3 rating of 98 and an up trending
ADX of 32.
Ann Taylor
(
ANN |
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PowerRating) is beginning to
trigger out of a Trend Pivot Pullback, where the stock makes a false move out of
the pullback before resuming its uptrend. ANN has a
3-month relative strength rank of 97 from TradingMarkets.com.
Ryland Group
(
RYL |
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Chart |
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PowerRating) is breaking out
of an ascending triangle. RYL is carrying a
3-month relative strength rank of 91 from TradingMarkets.com.
USA Networks
(
USAI |
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Chart |
News |
PowerRating)
is rallying from a pull back from the high. USAI has a
TradingMarkets RS3 rating of 82 and an Up trending
ADX number of 34.