Why We May Not See A Third Straight Day Of Gains
Today’s Market Flash was
written by Vincent Mao.
Stocks
are in the red this midday following the run up of the last two
sessions. The major indices are slightly in the red but off earlier lows as the
PMI, dollar, and Greenspan trio put a drag on equities. Manufacturing activity
in the Chicago area contracted in April. The dollar fell to a four-year low
against the euro. Fed Chairman Alan Greenspan testified before the House
Financial Services Committee that he believes “the economy is positioned to
expand at a noticeably better pace than it has during the past year.” However
Chairman Greenspan remains cautious on the timing and extent of growth.  Â
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is -0.38% at 8,470.63. The S&P 500
(
$SPX.X |
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Chart |
News |
PowerRating)
is -0.22% at 915.77. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is -0.58% at 1,462.19.
The day’s leaders are in
gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +2.15%, Healthcare
(
$HMO.X |
Quote |
Chart |
News |
PowerRating),
+1.45%, and Oil Service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), +1.45%.
Weak today are
semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), -2.16%, computer hardware
(
$HWI.X |
Quote |
Chart |
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PowerRating),
-2.01% and paper
(
$FPP.X |
Quote |
Chart |
News |
PowerRating), -0.96%.
In economic news, the
National Association of Purchasing Managers Index came in at 47.6 vs.
estimates of 48.9. Readings under 50 indicates contraction.Â
The 10-year U.S. Note
is -13 at 114 30.
The dollar is -0.77 at
97.43.
Gold is + 5.40 at
339.40.
Crude Oil +0.54 at 25.78
Volume is at 775,000,000
on the NYSE, and at 818,000,000 on the Nasdaq.
Market breadth is slight
negative, with NYSE advancing issues over declinging issues by a ratio of
1.50, and up volume over down volume by a 1.06 ratio. Nasdaq declinging issues
over advancing issues are at 1.14, and down volume over up volume is at a 1.59
ratio.
Top Dow stocks are:
DuPont
(
DD |
Quote |
Chart |
News |
PowerRating), +2.11% at 20.76,
McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating), +1.71% at 17.22, Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating), +1.57% at
28.34, BoeingÂ
(
BA |
Quote |
Chart |
News |
PowerRating), +1.24% at 27.72,ANDÂ Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating),
+1% at 40.73.Â
Stocks in the news:
Industrial equipment maker
Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating) is set to release its second quarter results later today. The
company also announced plans of more layoffs and cost cutting.Â
Nextel CommunicationsÂ
(
NXTL |
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Chart |
News |
PowerRating)
was downgraded to “Sell” from “Hold” from Deutsche Bank amid valuation concerns.
Â
Darden restaurants
(
DRI |
Quote |
Chart |
News |
PowerRating),
is off more than 10% as the operator of the Olive Garden and Red Lobster reduced
its full year forecast. Â