Day Traders Diary
11/16/10The correction is not over. U.S. stocks started lower on Tuesday after reports China would announce measures including price controls on food to slow the country's rapid economic growth. This coupled will new financials concerns out of Ireland and Greece gave investors another reason to take profits after a great run. The Dow Jones Industrial Average fell 99 points to 1,102, down for a fourth consecutive session. The S&P 500 Index declined 10 points to 1,187. The Nasdaq Composite Index declined 20 points to 2,493. The financials are lower following the news out of Europe and insider filing showing a number of hedge fund managers reduced their stakes in the big banks. Warren Buffett was one of the few top investors to add to his position in Wells Fargo and also creating a new position in Bank of New York Mellon. Both stocks are, however, lower this morning. Very few stocks are trading higher, but there are a couple bright spots. In the retail space Walmart, Home Depot, Dicks Sporting Goods, and Urban Outfitters look great following strong earnings. I guess the consumer isn't dead. Mattel is jumping 4% after an insider filing indicated that Carl Icahn bought a big stake. TJX, Saks, and Abercrombie & Fitch are modestly lower following earnings. Starbucks doubled their share buyback plan, however, the stock is under selling pressure. Through the morning the selling accelerated with a rise in the US dollar. The Dow fell 200 points before stabilizing. Only Home Depot and Walmart are higher in the blue chip index. The Nasdaq fell 40 points before stabilizing. One of the best sectors in the last two months, Commodities are getting hit due to the rise in the dollar. In the afternoon the averages remained weak not far from the lows of the day. Nothing changed in the last hour. The Dow Jones Industrial Average finished down 178 points, or 1.6%, at 11,023. The S&P 500 Index declined 19 points, or 1.6%, to 1,178. The Nasdaq Composite Index dropped 43 points, or 1.8%, to 2,469.
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