Day Traders Diary
9/28/11U.S. stocks opened higher on Wednesday, with the benchmark indexes all up for a fourth session on hopes for progress in efforts to resolve the euro-zone's debt trouble. The Dow Jones Industrial Average climbed 57 points to 11,248. The Standard & Poor's 500 Index added a point to 1,176. The Nasdaq Composite Index gained 3 points to 2,549. The quarter is ready to end and the earnings are starting to trickle in. Paychex is trading up a percent thanks to better than expected earnings. In the tech space, Jabil Circuit is jumping 9% after beating earnings estimates. Accenture is up 4% thanks to strong earnings, an announced share buyback, and a 50% hike in their dividend. Accenture's good earnings are lending support to IBM. IBM is up a percent approaching its' 52 week high once again. The chip stocks are modestly higher. Qualcomm and Lam Research are both up a percent thanks to upgrades. Amazon is jumping 3% ahead of their press release of a new tablet to compete with the ipad. Apple is higher on an upgrade. Apple investors don't seem too worried about completion from Amazon. The financials opened only modestly higher as Europe is assessing more levies against the banks. Politicians just don't get it. Goldman Sachs lowered price targets for a number of big money center banks. The commodity space is one of the few sectors to open lower. Chesapeake Energy is one of the few stocks in this sector trading up on news of a natural gas discovery out West in the Utica Shale region. Kodiak Oil & Gas is higher after announcing an acquisition. Through the first hour the rally dissipated led by commodities and the financials. The Nasdaq fell into the red while the Dow clung to a 30 point gain. Through the morning the Dow gave up its' gains only to rebound. In the afternoon the volume dried up and the averages drifted lower. The Dow fell over 100 points before rebounding. The Nasdaq fell 35 points only to rebound. Apple fell into the red, but Intel, Microsoft, and IBM are still in the green. Amazon has held up as well remaining up over 3%. Entering the last hour the averages were doing a good job of recovering only to sell off hard into the close. A rebound in the US dollar was lending support to the selling pressure. The Dow Jones Industrial Average finished down 179 points, or 1.6%, at 11,010. The S&P 500 retreated 24 points, or 2.1%, to 1,151. The Nasdaq Composite declined 55 points or 2.2%, to 2,491. Wednesday's losses snapped a three-day winning stretch for stocks.
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