Day Traders Diary

10/14/10

U.S. stocks open modestly lower after economic data showed a weekly bounce in jobless claims and tame core inflation in September. After a four-session climb, the Dow Jones Industrial Average declined 20 points to 11,075. The S&P 500 fell 4 points to 1,174. The Nasdaq Composite declined 7 points to 2,433. The earnings are flooding in. Safeway and Fairchild Semi are performing well after beating estimates. Apollo Group beat estimates, but then made cautious comments. The stock is down 25%. Winnebago, Granger, and Progressive are modestly lower following earnings. Plenty of upgrades and downgrades this morning. Ford, JP Morgan, EMC, Guess, HP,DR Horton, Alfac, Frontier, and Pulte Homes were all upgraded. JP Morgan and the rest of the financials are lower due in part to the suspension of the foreclosures. One analyst made cautious comments that the suspension of the foreclosures will slow down the housing recovery. A number of blue chip stocks are trading at new highs or at all time highs. The list includes IBM, Apple, Ford, Freeport McMoran, and Kraft. After the first hour the averages fought to get back into the green even though the financials are weak. Through the morning the averages continue to struggle to remain in the green as the financials sink lower. During the lunch hour the averages fell into the red led by the financials. In the last hour the selling accelerated with the Dow falling 70 points only to rebound into the close. Amazing. The Dow Jones Industrial Average ended down a point to 11,094. The S&P 500 index fell 4 points to 1,173, weighed down by its financials and materials sectors. The Nasdaq Composite eased 5 points to 2,435.

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