Did You Remember This Dow Anniversary?
Stocks were
mixed Friday.
After yesterday’s thrust and subsequent reversal, the major indices are flipping
back between green and red. Today marks the one-year anniversary of the Dow’s
six-year low. On Oct. 10, 2002, the index hit an intraday low of 7197. The
blue-chip index led the pack today, thanks to new 52 week highs in
American Express
(
AXP |
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PowerRating), Boeing
(
BA |
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PowerRating), ExxonMobil
(
XOM |
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PowerRating), General Motors
(
GM |
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PowerRating), Intel
(
INTC |
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PowerRating), and 3M
(
MMM |
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PowerRating).
The broader S&P was flat as it
struggled to get back above the 1040 level. After
yesterday’s wide range bar, it’s natural for prices to consolidate as traders
decide on the market’s future direction.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) lost 5.33 to 9674.68. The S&P 500
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$SPX.X |
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slid 0.67 at 1038.06. The Nasdaq
(
$COMPQ |
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PowerRating) gained 3.41 at 1915.31.
The day’s leading sectors are
Hardware
(
$HWI.X |
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PowerRating), +1.55%, Semis
(
$SOX.X |
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PowerRating),
+1.17%, Energy
(
$DXE.X |
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PowerRating), +0.93%, and Oil
(
$XOI.X |
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PowerRating),
+0.93%.
Weak today are Airlines
(
$XAL.X |
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PowerRating), -1.78%, Internets
(
$INX.X |
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PowerRating), -1.37%, Software
(
$GSO.X |
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PowerRating), -0.74%, Software
(
$GSO.X |
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PowerRating), -0.74%,
and Insurance
(
$INSRX.X |
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PowerRating), -0.64%.
In economic news, Producer
Price Index in September rose by 0.3% versus an expected rise of 0.1%. The
Core PPI September came in flat versus an expected rise of 0.1%. Lastly the
Trade Balance in August came in at -$39.2B compared to an expected
-$41.5B.
The 10-year U.S. Note
was +145 at 112 130.
The dollar was -0.46 at
91.53.
Gold was +1.60 at 373.60.
Crude Oil was +0.91 at
31.99.
Volume was
1,107,562,000 on
the NYSE, and 1,445,371,000 on the Nasdaq.
Market breadth was mixed,
with NYSE advancing issues over declining issues by 1.08 and down over up volume
by 1.04; Nasdaq declining issues over advancing issues at 1.23, and up volume
over down volume at 1.42.
Top Dow stocks were:
Eastman Kodak [EK|EK],
+0.71 at 22.35, Intel [INTC|INTC],
+0.66 at 30.43, General Motors [GM|GM],
+0.39 at 42.79, American Express
(
AXP |
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PowerRating),
+0.40 at 47.51, and Merck
(
MRK |
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PowerRating), +0.49 at 49.48.
Stocks in the news:
Semiconductor equipment maker
Cree
(
CREE |
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PowerRating) gained 8% after the company announced
that its former CEO Eric Hunter will dismiss his $3 billion suit against his
former employer. The long standing suit accused Cree of unfair or deceptive
trade practices, as well as securities fraud.
Deutsche Bank upgraded Intel
(
INTC |
Quote |
Chart |
News |
PowerRating). The firm raised its rating on the world largest semiconductor
company due to its "attractive" valuation in an otherwise expensive sector.
Deutsche Bank also upped its price target from $26 to $35. Shares of Intel rose 2%.
Airline issues
(
$XAL.X |
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PowerRating)
were lower today after UBS lower its rating on discount airliners America West
(
AWA |
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PowerRating), Air Tran
(
AAI |
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PowerRating), and Jet Blue
(
JBLU |
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PowerRating). Due to
concerns about profit margins and valuation, UBS lowered America West from “buy”
to “neutral”, and both Jet Blue and Air Tran from “neutral” to “reduce”.
Dow component General
Electric
(
GE |
Quote |
Chart |
News |
PowerRating) fell 2.8% after the company reported a decline in
quarterly results. The conglomerate giant earned 36 cents a share, in line with
estimates, but the results were 13% lower than last year’s levels. GE blamed the
shortfall on lower aircraft and gas turbine engine sales, as well as a $372
million accounting charge.
Monster Worldwide
(
MNST |
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PowerRating)
fell over 3% after the company announced that it has filed with the
SEC for a public offering of 6 million common shares. The online job-search firm
intends to use the proceeds for general corporate purposes as well as for
potential investments.
If you have any comments or
questions, please feel free to email me.
bricew@tradingmarkets.com