The Week In Review
5/23-5/27/11May 27, 2011
U.S. stocks opened higher on Friday after the Group of Eight leaders, at a two-day summit in France, noted that a strengthening global economy would lead to debt reductions. The Dow Jones Industrial Average rose 49 points to 12,452. The Standard & Poor's 500 Index advanced 5 points to 1,331. The Nasdaq Composite Index rose 7 points to 2,790. The last day before the long Memorial Day weekend so it should be a quiet one. The commodities continue to shine thanks to the Goldman Sachs upgrade earlier in the week. The fertilizers, oils, copper, gold and steel stocks look good. Coal stocks are higher as demand and pricing out of China continue to rise. Noble Corp and Noble Energy are higher on upgrades. The techs look pretty good this morning. Marvell is up 10% following so so earnings, but better than expected guidance. Broadcom is up 5% as FBR made it their top pick. Even HP is higher even though one analyst made cautious comments. One tech that can't seem to get going again is Intel following a downgrade from Goldman Sachs last week. The financials are participating in the rally this morning. One insurance stock, Aflac is down 3% on a downgrade. The company also recently lowered guidance due to their concentrated business in Japan. Through the morning the averages remained in the green right near the highs of the day. The dog of the day goes to Medco Health down 11% after losing a big pharmaceutical contract from Blue Cross and Blue Shield. CVS Caremark is up 3% as the main benefactor from Medco's loss. Through the morning and into the afternoon the averages remained in the green, but off the highs. Only a few select stocks remain weak although volume is extremely low. Many investors have already started the long holiday weekend. The Dow Jones Industrial Average ended up 38 points to 12,441. For the week, the blue-chip average lost 0.6%, its fourth straight down week. The S&P 500 gained 5 points to 1,331. Commodities and financials lead the gains. The S&P 500 lost 0.2% for the week, also its fourth weekly loss. The Nasdaq Composite gained 13 points to 2,796. It also lost 0.2% for the week, its second straight weekly loss.
May 26, 2011
U.S. stocks opened lower Thursday after reports on initial jobless claims and first-quarter economic growth showed the U.S. economy is on shaky ground. The Dow Jones Industrial Average fell 27 points to 12,365, weighed down by Merck, Travelers, and Caterpillar. The S&P 500 fell 2 points to 1,317 with all 10 sectors lower. The Nasdaq Composite lost a point to 2,759. In the retail space, solid earnings are lifting a number of stocks for the second straight day. Guess is jumping 11% after beating estimates and raising guidance. Tiffany is also performing great, trading up 8% after beating estimates and raising guidance. Heinz and Genesco are also higher following earnings. Tupperware and Polo are higher on upgrades. American Eagle was downgraded, but the stock is modestly higher. The commodities are the one sector holding up the best. Freeport and Cliffs Natural Resources are modestly higher. The oils for the most part are higher as well. In the tech sector NetApp looks good after beating earnings estimates. Oracle is higher on an upgrade. Microsoft is higher due to rumblings from at least one hedge fund demanding a new CEO. One IPO in the tech space Freescale Semi is trading higher. During the first hour the US dollar rebounded causing the Dow to sink. The Dow dropped 60 points while the Nasdaq is holding up near the unchanged level. A number of retailers and commodities remain in the green. Through the morning the US dollar remained elevated preventing the major averages from rallying. During the lunch hour the averages perked up reaching the unchanged level. Through the afternoon the averages continued to improve. Even the financials look good. Go figure. In the last hour, similar to yesterday, the rally in the Dow fizzled. The Nasdaq actually held up well. The Dow Jones Industrial Average finished up 8 points at 12,402 with percent gainers led by a 2% rally in Microsoft shares. The S&P 500 gained 5 points to 1,325, led by a 0.8% advance in the consumer discretionary sector. The Nasdaq Composite added 21 points to 2,782.
May 25, 2011
U.S. stocks opened lower on Wednesday, extending a losing streak into a fourth session, with global concerns again in play after Japan reported its exports declined by 12.5% in April after the earthquake and tsunami the prior month. The Dow Jones Industrial Average fell 12 points to 12,343. The Standard & Poor's 500 Index fell a point to 1,314. Reversing course, the Nasdaq Composite gained nearly a point to 2,746. The earnings keep coming in from the retail sector. Take Two Interactive, Zales, and Toll Brothers are higher following earnings. To the downside you have Express, Polo, Hormel, Costco, and American Eagle following earnings. Dillards upped their dividend and issued share backs, but the stock is lower. California Pizza Kitchen is up 9% after agreeing to a takeout offer. Martha Stewart is jumping 18% on news they hired Blackstone to look into strategic alternatives. The commodities are higher once again. Halliburton and El Paso are higher on upgrades. Freeport , Cliffs Natural Resources, and the fertilizers are higher. Molycorp is lower after offering 10 million shares. The financials are going nowhere. Bank of Montreal is unchanged following earnings. Sallie Mae is modestly lower even though it was upgraded. In the tech space Apple as upgraded and is modestly higher. Sycamore is higher after beating earnings estimates. Through the first hour the averages perked up with all the major averages into the green, but not by much. The conviction behind the buyers is not a strong one. Through the morning the averages ticked a little higher as a few more buyers stepped in. Through the afternoon the averages moved sideways until the last hour when a buy program kicked in, but the sellers came in at the close, snapping a three-session decline as energy and commodities-related companies gained after oil surpassed $101 a barrel. The Dow Jones Industrial Average added 38 points to 12,394. The Standard & Poor's 500 gained 4 points to 1,320, while the Nasdaq Composite advanced 15 points to 2,761.
May 24, 2011
U.S. stocks posted modest gains at Tuesday's start, with energy shares leading a bounce back from the prior day's finish, which had equities at their lowest level in a month. The Dow Jones Industrial Average rose 28 points to 12,408. The Standard & Poor's 500 Index added 4 points to 1,321. The Nasdaq Composite Index climbed 4 points to 2,763. The commodities are getting a boost from Goldman Sachs reversing their bearish call on oil, copper, and zinc. Most oil and oil drilling stocks are higher this morning. Diamond Offshore is up 2% even though it was upgraded. Freeport and Cliffs Natural Resources are up over 2%. The fertilizers are up for a second straight day. Mosaic received a second upgrade in as many days. Sanderson Farms is higher following earnings. El Paso is jumping 7% on indications they will split the company into two. The financials opened higher this morning, but not by much. They can't seem to get going. AIG is lower ahead of the Treasury's sale of their stake in the firm. The techs are struggling as well. Apple is lower once again on supply chain concerns. Research in Motion is lower on a downgrade. Saleforce.com is jumping over 2% on an upgrade. Cree is higher on an upgrade and a contract win. Google is one of the few big cap techs trading higher. In the retail space a couple of earnings reports from AutoZone and DSW. Both are up over 6%. After the open the rally fizzled with the major averages dropping into the red. Only the commodity sector still looks good. In the afternoon the averages slowly recovered with a few more stocks popping into the green only to sell back off into the close. The Dow Jones Industrial Average finished down 25 points at 12,356. The Nasdaq Composite declined 12 points to 2,746, its' lowest close since April 19. The S&P 500 turned lower on the last stretch of trading, ending off a point at 1,316.
May 23, 2011
U.S. stocks opened sharply lower on Monday as Italy became the latest European nation to be affected by the region's debt trouble. Rating agency Standard & Poor's said during the weekend Italy was at risk of having its debt rating reduced if it could not curb its borrowing and increase economic growth. The Dow Jones Industrial Average fell 146 points to 12,365. The Standard & Poor's 500 Index shed 16 points to 1,316. The Nasdaq Composite Index fell 44 points to 2,759. The good news is far and few between this morning. Krispy Kreme is jumping 17% following earnings and an upgrade. Gap and American Eagle are modestly higher on upgrades. In the commodity space Mosaic is higher on an upgrade. Potash and Agrium opened lower, but turned around after the open. BP was upgraded, but the stock is lower. The price of oil is down over 2%. Transocean is down 3% on cautious comments from an analyst. The techs look awful. Even Apple is lower on concerns of production disruption in China. The financials are weak once again. Stifel Financial was upgraded, but the stock is lower. Goldman Sachs opened lower, but rebounded after the open. It looks like Goldman is in buying their own stock. Through the morning the averages remained weak right where they started the day. No worse, no better. In the afternoon the averages slowly improved. A few more stocks in the green. In the Dow, Walmart and McDonalds have reached the unchanged level. Within the financials, Goldman Sachs is still in the green. The fertilizers look good within the commodity space and in the tech space, Apple moved into the green. About time. In the last hour the rebound fizzled. The Dow Jones Industrial Average lost 130 points, or 1.1%, to 12,381, with a 2.3% drop in Caterpillar shares leading declines in all but one of its components. The S&P 500 fell 15 points, or 1.2%, to 1,317. A 1.5% drop in the tech sub-sector led declines in all 10 industry groups. The Nasdaq Composite fell 44 points, or 1.6%, to 2,758.