Do We Buy Or Sell?
Stock indexes are trading mixed as traders strive to
get a handle on market direction following yesterday’s post-Fed, dramatic
selloff.
The Dow, S&P 500, and Nasdaq caved after the Fed’s highly
expected .25% interest rate cut announcement yesterday and traded below recent lows
to fresh multi-week or multi-month lows.
Bulls and bears are battling it out
at mid-session Wednesday, striving to determine if downside momentum is
still dominating or if the market is oversold and stretched too far to the
downside.
The Dow is up 28 at 10,202, the S&P 500 is up
1.59 at 1158.77, and the Nasdaq Composite is down 3.44 at 1828.17.
Cars, chips and gas are lending support to the
markets that turned more pessimistic following yesterday’s
rate-cutting decision that was accompanied by a downbeat statement from the
Fed, positing continued economic weakness for the remainder of the
year.
General Motors
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Dow component, is helping propel blue-chip stocks after reaffirming it
would meet earnings forecasts. The world’s biggest maker of cars is up 1.50
at 57.20.
Oil service
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following the American Petroleum Institute’s weekly estimate of national oil
and oil derivatives stockpiles. The report came in below expectations and
observers of the energy scene point to continued strong demand and the
looming September 1 date OPEC has scheduled to cut back on output. Steady
demand and lower supplies could work to hold up oil prices and oil-related corporations’
profit margins. Oil services are the strongest index, up 3.86, and the oil
index is up a strong 2.34.
Semiconductor stocks are higher following word that
chip making equipment sales picked up 5% last month. Stronger sales of gear
to make chips is a precursor to higher chip production Leading stocks from
the semiconductor index
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+5%, and National Semiconductor
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