Bernanke Comments Cause Selloff

  • June 5, 2007
  • Darren Wong

The major indices moved sharply lower after
comments from Fed Chairman Bernanke. The Chairman stated that the
slowdown in housing is ongoing on that effects may last “for
somewhat longer than previously expected.” Bernanke also provided
some positive comments that dashed hopes for a rate cut later this
year.

July crude futures fell 0.9% to $65.61 per barrel. Gold
futures for August delivery also fell today by 0.2% to $674.20 an ounce.

Around Europe, Germany’s DAX Index
lost 0.7% to finish at 7,919.83, France’s CAC 40 Index lost 0.8%
to 6,078.54, and Britain’s FTSE 100 lost 0.5% to 6,632.80.

Today’s

PowerRatings Heat Map continues to show wide-spread bearishness across all market sectors.
Buying stocks at these lofty levels carries greater risk.
Click here for a free trial to see all
33 market sectors.



Click here to see our new list of indicators that includes

Gaps Down 5% or More,

2-Period RSI Below 2,

Stocks Up 10% or More.  Historically proven edges make
these a great place to start making a watch list. 


Stocks in
Motion

Avaya
(
AV |
Quote |
Chart |
News |
PowerRating) To Be Taken Private By SilverLake
And TPG Capital For About $8.2 Bln (full
story). AV shares rose by 1.7%.

Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) To Advance 3 Key Compounds Into Phase
3 Trials In 2007 For Different Cancers (full
story). PFE shares lost 0.8%.

Bed Bath & Beyond
(
BBBY |
Quote |
Chart |
News |
PowerRating)Sees Q1 EPS Below
Consensus (full
story). BBBY shares fell 5.6%.

Procter & Gamble
(
PG |
Quote |
Chart |
News |
PowerRating) Backs Q4 Forecast
(full
story). PG shares rose by 0.5%.

For more stories as they happen, go to our
Breaking News section.

Market Snapshot

Dow

 -80.86 13,595.46

NASDAQ

 -7.06 2,611.23

S&P 500

 -8.23 1,530.95

 

 NYSE NASDAQ

Volume

 2,837,418,000 2,172,130,000

Advances

 843 1075

Declines

 2398 1944

Up Volume

 669 693

Down Volume

 1959 1380

New Highs

 172 146

New Lows

 41 48


   



Strongest/Weakest Sectors

Strongest Sectors

Weakest Sectors
GSTI Internet Index (GIN) Nasdaq Transportation Index (TRANX)
Dow Jones Internet Index (ECM) S&P Retail Index (RLX)
GSTI Multimedia Networking Index (GIP) Nasdaq Financial-100 Index (IXF)


Economic
News

ISM Services 57.4
vs 55.5 consensus

Darren Wong

Associate Editor

darrenw@tradingmarkets.com