The Comeback
Airlines got battered and the Dow suffered its worst point loss ever yesterday,
but both are coming back from losses suffered after Monday when trading resumed
for the first time since last week’s terrorist attacks.
The airline sector
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loss Monday, as traders exited in droves. But buyers are picking up deeply
discounted shares of air carriers and giving the sector a 5.4% lift, the
best group gains on the session. The XAL rallied out of a Haggerty Slim Jim
formation after an initial surge and is trading on its highs of the
session.
Other sectors that were the hardest hit are also
handing in some of the session’s best group performances. Chemicals
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+2.6%, and retail
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the most yesterday as the Dow accented its record price loss with record
volume, but are leading the blue chip index to nearly a triple-digit
gain.
The Dow is up 94 at 9,015, the S&P 500 is up 7.35
at 1046.12, and the Nasdaq is up 14.17 at 1593.72.
The defense and defensive healthcare sectors were
among the the few areas of the market to post gains yesterday and we are
seeing follow through in selected issues from these group today.
Advanced Technical Products
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advanced composite materials used in the aerospace and defense industries,
has surged to a three-year high and has added 2.12 to 14.44.
Engineering Support Systems
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that designs and manufactures military support equipment, is re-challenging
the highs it set last month, having gained 65% over the past two sessions.
PolyMedica
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business, is another stock that is up for a second day, up 2.71 at 16.71.
Still, selected Dow stocks believed to be adversely
effected by the attack are restraining blue chips. American Express
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a firm with offices at the World Trade Center, and Boeing
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BA |
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manufacturer of airplanes, are down by 8.3% and 5.2%, respectively. However,
United Technologies
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47.50 due to perceptions that its jet engine and other businesses would be
effected, is making a come back today with a gain of 2.50, or 5%, the best
performer on the Dow. Wal-Mart’s
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retail.
Oracle
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tech, after saying it expects earnings in its current fiscal second quarter
to match those from a year earlier. Oracle is up .52 at 11.53, a gain of
4.5%.