The Week In Review
5/16-5/20/11
May 20, 2011U.S. stock indexes opened lower on Friday, with Wall Street retreating after a two-day climb as retailers Gap and Aeropostale lowered 2011 forecasts. The Dow Jones Industrial Average fell 23 points to 12,581. The Standard & Poor's 500 Index declined 2 points to 1,340. The Nasdaq Composite Index dropped 3 points to 2,819. Gap and Aeropostale are both down over 17% dragging the sector with it. Ann Taylor is down 4% even though earnings and their outlook were strong. Dollar Tree and Tyson Foods are lower even though both were upgraded. At least three retailers are bucking the trend Red Robin Gourmet Burgers, Foot Locker, and Hibbett Sports thanks to strong earnings. Red Robin and Foot Locker are both up over 10%. In the tech space things are mixed. Aruba Networks, Autodesk, and Intuit are lower following earnings. Salesforce.com is jumping 8% after beating estimates. Akamai is up 6% on insider buying. Chinese Internet commerce company, Dangdang is jumping on earnings. Intel was upgraded, but the stock is lower. Apple and Google are lower along with most blue chip stocks. The commodities are accelerating their losses as money continues to rotate out of that sector. Patriot Coal was upgraded, but the stock is lower. The financials continue to stumble. Donaldson is modestly higher following earnings. American Express is modestly lower even though it was upgraded. Through the morning the averages accelerated to the downside with the Dow dropping 100 points and the Nasdaq declining 25 points. The diamond of the day goes to Barnes & Noble up 30% after receiving a takeover offer. Fortune Brands is down a percent even though they are selling their golf division. In the afternoon the averages slowly recovering almost getting back to the unchanged level before selling back off in the last hour. The Dow Jones Industrial Average lost 93 points led by a 2.5% drop in Alcoa. The S&P 500 fell 10 points to 1,333, with a 1.5% decline in financial stocks leading losses for all 10 subsectors. Goldman Sachs dropped over 3% on concerns of a federal investigation. The Nasdaq Composite lost 19 points to 2,803. For the week, the Dow lost 0.7%, the S&P 500 fell 0.3%, and the Nasdaq Composite dropped 0.9%.
May 19, 2011
U.S. stocks opened higher on Thursday thanks to positive employment data even though retail earnings coming in last night and this morning have been disappointing. The Dow Jones Industrial Average rose 49 points to 12,609. The Standard & Poor's 500 Index climbed 3 points to 1,344. The Nasdaq Composite Index rose 5 points to 2,820. The list of retailers trading lower following earnings include Limited, Advance Auto Parts, GameStop, Ross Stores, Williams Sonoma, Sears, and Buckle. Buckle is down 10%. Big Lots is down 9% after indicating they are not looking to sell their company. Macys and Soda Stream were upgraded, but both are lower. Tiffanys upped their dividend, but the stock is lower. Jack in the Box, PetSmart, Toro, Bon-Ton, and Childrens' Place are higher following earnings. The commodities and financials are down once again after a brief rally over the last several days. The techs are mixed. The recent darling, Intel is down 3% after Goldman Sachs slapped a sell rating on the firm. The semi equipment markets are lower as well. Cisco, BMC Software, Brocade and Aruba Networks are modestly higher on upgrades. Apple and Google are higher as well. In the first hour the Dow rose as much as 70 points before giving up most of those gains. The Nasdaq did the same, rallying only to give up the gains following the first hour. The most successful IPO in recent memory, social network firm LinkedIn nearly doubled on its' first trade thanks to strong demand. Good for them. Through the morning the averages remained weak, however during the lunch hour the averages rebounded into the green. Through the afternoon the averages remained in the green as LinkedIn kept pushing higher. The techs look good except for Intel, Corning, and Research in Motion. The commodities remain in the red along with most of the financials. In the last hour the averages were able to hold on to their gains. The Dow Jones Industrial Average finished up 45 points at 12,605. The S&P 500 Index rose almost 3 points to end the day at 1,343. The Nasdaq Composite Index rose 8 points to 2,823.
May 18, 2011
U.S. stocks opened mostly lower Wednesday, even though the earnings so far this morning are looking better than expected. The Dow Jones Industrial Average fell 35 points to 12,444. The Standard & Poor's 500 Index declined 2 points to 1,326. Both indexes are lower for the fourth straight session. The Nasdaq Composite Index rose fractionally to 2,783. To the upside, Dell and Analog Devices are both trading up 5% following earnings. The chips in general look good this morning. Broadcom and Intel are higher following positive analyst comments. Apple, Corning, and Research in Motion look good this morning. HP looks awful once again down 2% following more downgrades. More earnings keep coming out of the retail sector. Abercrombie & Fitch is jumping 4% following better than expected earnings. SodaStream is up 8% thanks to strong earnings. BJ's is also higher following earnings while TJX, Under Armour, and Gamestop are higher on upgrades. Staples is down a whopping 14% following earnings. Target and Deere are also lower following earnings. Mattel, Walmart, and Dicks are lower even though each were upgraded. Through the first hour the Nasdaq improved while the Dow remains stuck in the red. The financials are lower following a one day rally. Shocker. Eaton Vance is lower following earnings. Aflac is down 3% after lowering guidance. Through the morning the bulls stepped back in with all three major averages moving into the green led by commodities and techs. In the afternoon the averages kept improving even as the Fed minutes from their last meeting were released. Techs and commodities remain in the green right into the close. The Dow Jones Industrial Average finished up 80 points at 12,560 while the S&P 500 rose by almost 1% or 11 points to 1,340. Both averages ended their three day losing streaks. The Nasdaq Composite rallied 31 points to finish the day at 2,815.
May 17, 2011
U.S. stocks open solidly in the red following a number of earnings reports that haven't met expectations. The Dow Jones Industrial Average fell 73 points to 12,477. The S&P 500 lost 5 points to 1,324. The Nasdaq Composite fell 13 points to 2,769. HP shares fell 6% following dismal guidance. The new CEO is not getting it done. Another Dow component, Walmart is trading lower following earnings results. Home Depot is bucking the trend trading up 2% following earnings and raised guidance. The retail sector is all about the haves and have nots. Urban Outfitters and Saks are trading higher following earnings. Dicks and TJX are lower due to disappointing earnings and guidance. Best Buy is trading higher following hedge fund disclosures showing one top money manager took a big stake in the firm. The financials are opening modestly higher even though the New York Attorney General is looking to investigate Goldman Sachs, Morgan Stanley, and Bank of America for some of their mortgage practices. I thought we were done with this. The NYSE Euronext is down once again after merger talks have broke down due to regulatory concerns. The Nasdaq is holding up better than yesterday when the index got clobbered. Apple, Google, and Research in Motion are higher. After the first hour the averages remained weak with the Dow down 50 points and the Nasdaq down 11 points. Through the morning the Dow pushed lower falling 100 points. HP is dragging down the Dow and the PC related stocks. HP is now down 9% blowing through their 52 week low. That's not good. In the afternoon through the last hour the techs battled back led by Google, IBM, and Research in Motion. HP remains weak down 8% with a plethora of downgrades. Not a good sign. The financials also look good, but their rebounds only last a day or two. A couple of commodities were up, but not many. The Dow Jones Industrial Average finished down 68 points at 12,479. The S&P 500 fell just 49 cents to 1,328. The Nasdaq Composite closed up less than a point at 2,783.
May 16, 2011
U.S. stocks opened lower on Monday thanks to disappointing economic data and an embarrassing arrest of the managing director of the International Monetary Fund organization. The Dow Jones Industrial Average fell 26 points to 12,571. The Standard & Poor's 500 Index fell 2 points to 1,335. The Nasdaq Composite Index dipped 8 points to 2,819. A quiet day for news. On the earnings front, JC Penney is up 3% after beating estimates. Lowes and Valspar are lower following earnings. Continuing in the retail space, Ford is higher on an upgrade and GM is higher on a positive article in Barrons. American Eagle is higher on an upgrade, but Gamestop is lower even though it was upgraded. The commodity prices like oil are lower helping lift the transportation sector. Jetblue and AMR are higher on upgrades. After the open the averages started to turn around. The financials finally look good after getting hit on Friday. Mastercard is higher on an upgrade. Goldman Sachs looks good. The NYSE Euronext is sharply lower after the Nasdaq and the Ice Exchange dropped their bids for the exchange. After the open, the commodities rebounded. The fertilizers, Cliffs Natural Resources, and Freeport look good. Rowan is up 3% after selling an oil and gas unit to Joy Global. After the first hour the Dow rebounded to the unchanged level led by commodities and financials. The Nasdaq is stuck in the red as Apple and Google can't seem to get going. The chips in general are higher. Qualcomm is higher on an upgrade. Micron is higher on takeover rumors. Intel made a new high after raising their dividend once again last week. In the afternoon the rally fizzled as the financials and commodities gave up most of their gains. The techs remain weak. Through the afternoon into the last hour the selling accelerated with the Nasdaq falling 50 points. The Dow Jones Industrial Average finished down 47 points at 12,548, with percentage losers led by Microsoft and Cisco Systems. The S&P 500 lost 8 points to 1,329, with a 1.5% retreat in the tech sector. The Nasdaq Composite fell 46 points, or 1.6%, to 2,782.