Stocks Consolidate Ahead of Fed Meeting

• May 8, 2007
• Darren Wong

Bulls overcame the early selloff in all three major
indices and helped pull them back to close nearly flat.  HP
helped hold the Dow up today after guiding higher for Q3.  HP
shares rose nearly 3% in Tuesday’s session.

June crude futures rose 1.3% to
close at $62.26 per barrel after attacks by militants in Nigeria
shut down 3 pipelines. 
June gold futures declined 0.4% to $687.40 an ounce.

Around Europe, Germany’s DAX fell 1.1%
to close at 7,442.20, France’s CAC 40 Index lost 0.6% to 6,034.25,
and Britain’s FTSE 100 Index lost 0.8% to 6,550.40.

Our

PowerRatings Heat Map is showing continuing widespread weakness across many
sectors.  These include Banking, Diversified Services, Energy, Metals/Mining, Internet,
Transportation, and Computer Hardware.

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Gaps Down 5% or More,

2-Period RSI Below 2,

Stocks Up 10% or More.  Historically proven edges make
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Stocks in Motion

Hewlett-Packard ( HPQ | Quote | Chart | News | PowerRating) Hikes Q2 Targets On Strong PC Business; Guides Q3 (full story).  HPQ shares rose 2.1%. Motorola ( MOT | Quote | Chart | News | PowerRating) Says Preliminary Estimates Indicate Carl Icahn Not Elected To Board (full story).  MOT shares fell 2.1%. Expedia ( EXPE | Quote | Chart | News | PowerRating) Q1 Profit Rises 49%, Adj. EPS Misses Consensus By 2 Cents (full story).  EXPE dropped nearly 3%. CVS/Caremark ( CVS | Quote | Chart | News | PowerRating) Q1 Profit Rises 24% On Revenue, Margin Growth, April Comps. Rise 6.1% (full story).  CVS shares rose by 2.5%. Wynn Resorts ( WYNN | Quote | Chart | News | PowerRating) Swings To Q1 Profit (full story).  WYNN shares lost 1.9%. McDermott ( MDR | Quote | Chart | News | PowerRating) Q1 Earnings Surge, Top Estimate (full story).  MDR shares jumped 11%. Marsh & Mclennan ( MMC | Quote | Chart | News | PowerRating) Q1 Profit Falls 36%; Revenue Up 5%; Board Approves $500 Mln Buyback (full story).  MMC shares lost 2.6%. For more stories as they happen, go to our Breaking News section.

Market Snapshot

Dow -3.90 13,309.07 NASDAQ +0.80 2,571.75 S&P 500 -1.76 1,507.72   NYSE NASDAQ Volume 2,760,667,000 1,895,206,000 Advances 1273 1227 Declines 1926 1807 Up Volume 1030 1015 Down Volume 1521 765 New Highs 160 144 New Lows 25 62

   

Strongest/Weakest Sectors

Strongest Sectors Weakest Sectors GSTI Hardware Index (GHA) Amex Gold Bugs Index (HUI) Nasdaq Telecom Index (IXTCX) Amex Natural Gas Index (XNG) GSTI Multimedia Index (GIP) Deutsche Bank Energy Index (DXE)

Economic News

Wholesale Inventories 0.3% vs 0.4% consensus

Darren Wong

Associate Editor

darrenw@tradingmarkets.com