What Will Revive This Economy?
Stocks opened higher Wednesday as the
powerful words of the Fed directed the morning’s trading session.
With rates lowered by 300 basis points
since January 3, one would think the markets would have fueled higher. Well.
with a lackluster global economy and the lack of revival in the U.S. markets,
the FOMC has left the door open until we see some signs that the economy is
going to move forward and continue.
This will not happen until we see
something like the NAPM Composite index break above 50% and the labor market to
gain some footing. If the economy does not start to show these signs, we could
price in another 25 basis point cut in October. Analysts feel we should see some
economic recovery in the latter part of this year or the beginning of next year.
Breadth for the day was positive. NYSE
advancers led decliners 1837 to 1269; Nasdaq advancers led decliners 1818 to
1307.
The broader markets closed higher for
the session with the Nasdaq Composite gaining 1.5% and the Dow Jones
Industrials taking in a gain of 1.0%.
The CBOE Volatility Index
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closed lower 3.4% and the Nasdaq 100 Volatility Index
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as no new market bias signals are triggered.
The Biotechnology Index
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moved higher in the trading session, gaining 4.8% taking out its high made
yesterday.
Also gaining was the Semiconductor
Index
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The GSTI Internet Index
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higher 2.2% .
Sliding in the session was the
Insurance Index
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The Oil Services Index
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pulled back from an intraday rally to close in the bottom of its range, below its open and off 0.5%.
And the Gold and Silver Index
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lost 0.6%.
Looking at some individual gainers,
Pharmaceutical Resources
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Waters Corp
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on the SG Cowan upgrade from Buy to Strong Buy.
Oil company Valero Energy
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climbed 5.0%.
Pharmaceutical company Isis
Pharmaceuticals
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will be taking a 9% stake in an ISIP drug for lung cancer. The alliance is worth
a little more than $300 million.
While biotechnology firm Celgene
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tacked on 15.5% after the FDA said it viewed a new Ritalin drug as approvable.
Losing ground was Covance
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closing down 4.6%.
Taiwan Semiconductor
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10.4% as the company announced that it has delivered its 12 inch silicon wafer
to customers.
Polymedica
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hammered and closed off by 25.8% after the FBI raided the company in connection
with possible Medicare fraud.
Drug marketing company Professional
Detailing
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from Intermediate Term Accumulate, Long Term Buy to Intermediate Term Neutral,
Long Term Accumulate.
And telecom services company Metro One
Telecommunications
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