Day Traders Diary
5/11/09U.S. stocks pointed lower at Monday's start as investors stepped back from last week's huge rally. A handful of large banks this morning said they would sell common stock to repay funds drawn from the government's bailout program. The Dow Jones Industrial Average shed 104 points to 8,470. The S&P 500 Index shed 14 points to 915, while the Nasdaq Composite fell 25 points to 1,713. Understandably, financials are pulling back from a great run last week. KeyCorp, Capital One, and BB&T announced plans this morning to raise capital to pay back TARP. All are trading lower. Allied Capital is down 18% after reporting a quarterly loss. HSBC reported a quarterly profit, however, the stock is lower. The retail sector is also succumbing to profit-taking. Home Depot, Lowes, Costco, and William Sonoma are lower following downgrades. American Eagle is modestly higher following two upgrades. Walmart is also modestly higher. After the first hour, the averages remained weak near the lows of the day. A few techs like IBM are creeping into the green. As the morning progressed, the averages tried to improved led by the techs. IBM, Google, Apple, Microsoft, and Intel moved into the green. Apple received a couple of upgrades. In the afternoon, the averages remained weak with the financials under selling pressure. Entering the last hour, the Dow remained down over 100 points. The Nasdaq moved into the green thanks to the strength in the financials. The Dow Jones Industrial Average finished near the lows down 155 points, or 1.8%, at 8,418. The S&P 500 Index shed 19 points, or 2.2%, at 909, while the Nasdaq Composite stumbled 7 points to 1,731.
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