Early Rally Fizzles Out

  • May 15, 2007
  • Darren Wong

Stocks rose sharply in morning trading, but the
move was unsustainable as sellers swooped in to take profits. 
The Dow retreated from a record intraday high of 13,481.60.

Following a Royal Dutch Shell
production cut in Nigeria, June crude futures closed higher by
1.1% to $63.17. 
June gold futures added 0.7% to $674.50 an ounce.

Around Europe, Germany’s DAX led to
the upside with a 0.6% gain to close at 7,505.35.  France’s
CAC 40 Index added 0.4% to 6,049.76 and Britain’s FTSE 100 Index
rose 0.2% to 6,568.60.

Today’s

PowerRatings Heat Map is looking neutral to slightly bearish.  Stocks
across the board remain near their highs, which makes the risk of
buying them greater in the short term.  A few sectors are
mixed such as Drugs and Electronics. 


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

Weak Housing Market, Erratic Weather Shatter Home Depot’s
(
HD |
Quote |
Chart |
News |
PowerRating) Q1; Net Drops 30%; EPS Misses Estimate; Sales Up 0.6%; Revises FY07 EPS
View (full
story).   HD shares fell 1.1%.

Strong International Biz Lifts Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) Q1
Profit Up By 8%, Sets Q2 Target (full
story).  WMT shares lost 0.4%.

Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating)
Selects Thomas Weisel Co-founder Blake Jorgensen As Finance Chief (full
story).  YHOO shares fell 1.5%.

AIG
(
AIG |
Quote |
Chart |
News |
PowerRating)
To Acquire Remaining Stake In 21st Century Insurance For $22 A Share (full
story).  AIG shares lost 0.3%.

Winn-Dixie
(
WINN |
Quote |
Chart |
News |
PowerRating) Swings To Profit In Q3; Identical Store Sales Up 1.6% (full
story).  WINN shares jumped 38.2%.

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

Market Snapshot

Dow

 +37.06 13,383.84

NASDAQ

 -21.15 2,525.29

S&P 500

 -1.96 1,501.19

 

 NYSE NASDAQ

Volume

 2,984,508,000 2,165,418,000

Advances

 1221 898

Declines

 1982 2112

Up Volume

 1169 468

Down Volume

 1586 1610

New Highs

 210 134

New Lows

 38 119


   



Strongest/Weakest Sectors

Strongest Sectors

Weakest Sectors
S&P Chemicals Index (CEX) Computer Hardware Index (HWI)
Nasdaq Transportation Index (TRANX) Amex Airline Index (XAL)
CBOE Dow Ten Index (MUT) GSTI Internet Index (GSTI)


Economic
News

Core CPI y/y +2.3%
vs +2.4% Bloomberg Consensus, prior +2.5%

CPI y/y
+2.6% vs +2.6% Bloomberg Consensus, prior +2.8%

NY Empire State Index 8.0 vs 9.0 consensus, prior 3.8

Darren Wong

Associate Editor

darrenw@tradingmarkets.com