Day Traders Diary

6/8/10

U.S. stocks opened higher receiving a lift after Federal Reserve Chairman Ben Bernanke said he doesn't expect a double dip recession in the U.S.. These comments and a firming in the European markets are helping soothe investors' nerves. The Dow Jones Industrial Average gained 31 points to 9,848. The S&P 500 index rose 4 points to 1,055, while the Nasdaq Composite gained 4 points to 2,178. A couple of Dow components are performing well. Caterpillar is up 2% after reiterating guidance for the next two years. Boeing and JP Morgan are higher on upgrades. The financials are modestly higher after getting clobbered the last several days. Suntrust is up 2% on an upgrade. Deutsche Bank is higher as well on an upgrade. In the tech space Apple and Corning were upgraded. Both are higher. Intel and Broadcom are lower on downgrades. Altera reiterated guidance, but the stock is not reacting. In the retail space Dollar General is higher following earnings. Bed Bath
and Beyond is up on an upgrade. Talbots is lower following earnings. Pep Boys is down 7% following lackluster earnings. Within the first half an hour the averages fell into the red. Here we go again. Goldman Sachs downgraded a number of oil drillers including Diamond Offshore and Transocean. Both are down over 3%. A few commodity stocks are higher including Freeport McMoRan thanks to an upgrade. After the first hour the averages remain in the red. No buyers as of yet. Through the morning the selling accelerated a little bit. Fewer and fewer stocks are in the green. At 11:30 when the European markets were to close, the averages perked up with the Dow moving back into the green. The Euro perked up as well as the U.S. dollar sold off. In the afternoon the Dow rose as much as 70 points before pulling back. The Nasdaq remained in the red. By the middle of the afternoon the Dow fell back into the red only to rebound once again. At least the bulls are putting up a fight today. In the last hour, into the close, the Dow put in a good rally dragging the Nasdaq with it. The Dow Jones Industrial Average finished up 123 points, or 1.3%, at 9,939. The S&P 500 index rose 11 points, or 1.1%, to 1,062. The tech-heavy Nasdaq Composite remained underwater, losing 3 points to close at 2170.

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