Stocks Rise after Fed Decision; Dendreon Shares Plunge

  • May 9, 2007
  • Darren Wong

The Fed decided to keep interest rates steady at
5.25%, which helped stocks to recover after an early selloff. 
This marks the 7th straight meeting in which the Fed has not moved
interest rates.

June crude futures lost 1.1% to
close at $61.55 per barrel after this week’s Energy Department
report showed inventories at 3-month highs. 
June gold futures declined 0.7% to $682.50 an ounce.

Around Europe, Germany’s DAX Index
gained 0.45% to close at 7,475.99, Britain’s FTSE 100 Index closed
flat at 6,549.60, and France’s CAC 40 Index added 0.3% to
6,051.63.

Our

PowerRatings Heat Map remains on the bearish side as the market continues to
hold near highs.  Taking long positions at this point may hold more risk.  The
weakest sectors today are Transportation, Metals/Mining, Manufacturing, and
Energy.


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

Toll Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating) Q2 Home Building Revenues Drop
19% Hammered By Poor Market Conditions; Withdraws FY07 Outlook (full
story).  TOL shares fell 0.5%.

Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
Q3 Earnings Rise, Top Estimate; Sees Q4 Sales Up 15-16% (full
story).  CSCO shares dropped 6.6%.


Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating) Q4 Loss Widens, Excl. Charges Adj. EPS Misses
Consensus, Revenue Fell 4%; Expects Q1 Non-GAAP Loss Per Share Wider Than
Analysts’ View (full
story).  ERTS shares lost 4.3%.

Dendreon
(
DNDN |
Quote |
Chart |
News |
PowerRating) Shares Plunge After FDA Further Data on the Company’s Provenge
cancer vaccine.  DNDN shares fell 64%.

Rio Tinto
(
RTP |
Quote |
Chart |
News |
PowerRating) Shares Surge on BHP
(
BHP |
Quote |
Chart |
News |
PowerRating) Buyout Speculation.  RTP
shares added 12%, while BHP shares rose 5%.

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

Market Snapshot

Dow

 +53.80 13,362.87

NASDAQ

 +4.59 2,576.34

S&P 500

 +4.86 1,512.58

 

 NYSE NASDAQ

Volume

 2,830,662,000 2,106,055,000

Advances

 2022 1652

Declines

 1175 1366

Up Volume

 1779 1131

Down Volume

 856 870

New Highs

 274 170

New Lows

 17 54


   



Strongest/Weakest Sectors

Strongest Sectors

Weakest Sectors
Dow Jones Equity REIT Index (DJR) Nasdaq Telecom Index (IXTC)
Amex Airline Index (XAL) Amex Natural Gas Index (XNG)
GSTI Semiconductor Index (GSM) Deutsche Bank Energy Index (DXE)


Economic
News

FOMC leaves rates
unchanged at 5.25% as expected

Fed says future
policy adjustments will depend on outlook for both inflation, growth

Fed says core inflation remains somewhat elevated

Energy Department reports U.S. crude supply up 5.6 million
barrels last week

Darren Wong

Associate Editor

darrenw@tradingmarkets.com