Day Traders Diary
7/27/12U.S. stocks opened higher on Friday, with the S&P 500 index joining the Dow Industrials in positive turf for the week, after the leaders of Germany and France pledged to protect the euro zone. The Dow Jones Industrial Average rose 45 points to 12,933. The S&P 500 index climbed 5 points to 1,365. The Nasdaq Composite gained 8 points to 2,901. The earnings keep flooding in better than expected. The healthcare space has perked up. Amgen, Merck and Gilead Science are all higher by 3% on earnings. Coventry Health is jumping 7% on earnings. Even the HMOs are higher. In the tech space things are mixed. Netsuite and Amazon look great following earnings while Facebook, Netgear, and Qlogic are sharply lower on earnings. Apple is lower once again, but the rest of the blue chip techs look good. KLAC Tencor is higher on earnings while Maxim Integrated is higher after raising their dividend. In the retail space Deckers Outdoors and Regal Entertainment are higher on earnings while Starbucks is getting hit following earnings. Amazon traded down 10% afterhours last night on earnings however the stock is opening higher by 6% this morning for a 16% rebound from last nights' lows. The company only made a penny a share in the quarter. How do you value a company like that? Callaway is higher by 2% on in line earnings. Cabalas is higher on earnings the other day and an upgrade today. Through the first hour the averages modestly pulled back only to rebound once again. The three weakest sectors of late materials, industrials, and energy look good except for one component. In the energy space Exxon is weak, in the material space Newmont Mining is down 4% on earnings while United Tech is modestly lower in the industrial space. The financials are modestly higher except for JP Morgan. Homebuilder, Pulte Group is higher following earnings the other day and an upgrade today. Through the morning the averages held up well, rallying to new highs for the day with the Dow rallying 100 points and the Nasdaq improving by 35 points. In the middle of the afternoon the averages received another jolt thanks to comments out out Europe from Mario Draghi about possible bond buys, a rate cut, and a new LTRO program. That caused the Dow to jump another 100 points and the Nasdaq to jump 30 points. A great end of the week rally thanks to Mario Draghi. Into the close the averages pulled back, but certainly finished the week with a bang. The Dow Jones Industrial Average gained 187 points, or 1.5%, to 13,075, its first close above 13,000 since May 7. It rose nearly 2% for the week. The S&P 500 rose 25 points, or 1.9%, to 1,385, up 1.7% for the week. The Nasdaq Composite rose 64 points, or 2.2%, to 2,958.
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