Day Traders Diary
5/5/09U.S. stocks opened lower on Tuesday after a nice run up yesterday particularly in the financials. The Dow Jones Industrial Average rose 12 points to 8,439. The S&P 500 index fell 60 cents to 906, still positive for the year. The Nasdaq Composite declined 7 points to 1,756. More news this time from the Wallstreet Journal indicating as many as 10 of the 19 largest banks will need to raise capital as a result of the stress test. Shares of Bank of America and Citigroup are trading higher even though both are expected to need additional capital. GE is higher on an upgrade. Wells Fargo, JP Morgan, and US Bancorp are lower following a nice run up yesterday. Legg Mason looks lousy, down 20% following a quarterly loss. Plenty of earnings keep flooding in. Molson Coors, Kraft, Automatic Data, Marvel Entertainment, and Louisiana Pacific are higher following earnings. Archer Daniels Midland is lower by 6% after missing estimates. AK Steel is down 8% after lowering guidance.Commodities in general are trading lower. After the first half an hour, the averages remained range-bound near the unchanged level. Can't go up every day. After the first hour, the averages drifted lower. No heavy selling. Entering the lunch hour, the averages slowly recovered, moving back to the unchanged level. The financials are looking better. In the afternoon, the averages drifted lower once again. In the last hour, the averages tried to claw their way back to the unchanged level. The Dow Jones Industrial Average finished down 16 points at 8,410. The S&P 500 index finished down 3 points at 903, unchanged for the year. The Nasdaq Composite lost 9 points to close at 1,754.
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