The Week In Review
6/20-6/24/11
June 24, 2011The markets remain on shaky ground. Mixed earnings reports and better than expected GDP and durable goods numbers did little to support the averages. The Dow Jones Industrial Average fell 24 points to 12,025. The Standard & Poor's 500 Index declined a point to 1,282. The Nasdaq Composite Index shed 4 points to 2,681. In the tech sector, Micron is down 12% on disappointing earnings. Oracle had better than expected earnings, yet the stock is down 4%. Accenture is one of the few stocks trading up following better than expected earnings. Most of the tech sector is lower with Apple unchanged so far this morning. The rest of the sectors are pretty quiet this morning. The financials are unchanged so far this morning. Discover is up 2.5% on an upgrade. Raymond James is up a percent on an upgrade. In the commodity space, things are mixed. Kodiak Oil & Gas is modestly higher on an upgrade. Diamond Offshore is up 2% on an upgrade. The diamond of the day goes to Southern Union up 15% on a competing takeover bid. The stock is up 40% in the last two weeks on two takeover bids. It's nice to be wanted. In the retail space, Campbell Soup is up a percent after announcing a one billion share buyback. Finish Line is down 3% following earnings. American Eagle is lower on a downgrade. Through the first hour the averages pushed lower with the Dow dropping 100 points and the Nasdaq declining 24 points. No buyers out there. It looks like people are starting the weekend early. Through the morning and into the afternoon the averages remained weak. A number of bond and income stocks are holding up, but that's about it. In the last hour, no rebound. The Dow Jones Industrial Average finished down 115 points, or 1%, to end at 11,934, losing ground for a third consecutive session. The Standard & Poor's 500 Index fell 15 points, or 1.2%, to 1,268. The Nasdaq Composite Index lost 33 points, or 1.3%, to 2,652. For the week, the S&P 500 Index fell 0.2% and the Dow industrials lost 0.6%. The Nasdaq Composite, however, gained 1.4% for the week, its first winning week in six.
June 23, 2011
Stocks opened lower Thursday, extending the prior session's decline as another batch of U.S. economic data showed continuing jobs weakness. The Dow Jones Industrial Average shed 147 points to 11,963. The S&P 500 Index declined 17 points to 1270 while the Nasdaq Composite Index dropped 30 points to 2638. So much for the short term rally, everything is getting hit this morning. The commodity sector is getting hit with oil down dramatically on news the International Energy Agency will release 60 million barrels to compensate the loss in production from Libya. Good for consumers. BP and Transocean are weak even though both received upgrades. Nabors Industries is down 5% on a downgrade. The financials are lower once again. Paychex and Discover are modestly higher following better than expected earnings. Plenty of upgrades and downgrades in the tech sector, without much reaction. LSI Logic, EMC, and Net App were all upgraded, but the stocks are lower. F5 Networks was upgraded yesterday and then downgraded today. The stock is down 2%. Red Hat is one of the few bright spots, up 5% following better than expected earnings. In the retail space a couple of standouts. Rite Aid is up 3% on earnings. Bed Bath & Beyond is jumping 5% on earnings. Decker Outdoor is higher on an upgrade. The drop in oil is also a benefit to retailers. Through the first hour the selling accelerated with the Dow dropping over 200 points. The Nasdaq is holding its opening losses thanks to a turnaround in Apple's shares. Through the morning the Dow remained weak while a couple of techs are holding up like Apple, Research in Motion, Micron, and Red Hat. Google has not recovered, down 2% on news of a subpoena for antitrust concerns. That's not good. A couple of drug stocks look good like Pfizer and Bristol Myers. Bristol is up over 5%. In the afternoon a recovery was led by the tech and some of the commodities. The Nasdaq rallied into the green, but the brief rebound in the Dow did not last. Entering the last hour the Dow rallied once again on news Greece is close to a financial settlement. The rebound only lasted five minutes, but in the last hour into the close the averages put in another impressive rally. Pretty good volatility today. The Dow Jones Industrial Average finished down 59 points at 12050. The S&P 500 Index ended down 3 points at 1283 while the NASDAQ Composite Index ended higher by 17 points at 2,686.
June 22, 2011
U.S. stocks slid at the open Wednesday, weighed by profit-taking after a surge in the prior session in anticipation of a successful next-step towards resolving Greece's debt crisis. The Dow Jones Industrial Average fell 38 points to 12,150. The S&P 500 slid 3 points to 1,293. The Nasdaq Composite lost 7 points to 2,680. A quiet morning for news outside the vote in Greece. On the earnings front, FedEx is up 2% after beating estimates. UPS is up in sympathy along with the Dow Jones Transportation Average. Ford and GM also look good. The tech sector opened lower, but then rebounded. F5 Networks is jumping 5% on an upgrade. Jabil Circuit was downgraded, but the stock is higher by 6%. L3 Communications is up 5% on rumors of private equity interest. Research in Motion was upgraded, but the stock is lower. Philips Electronics is the dog of the day down 10% after preannouncing a weak quarter. The commodity sector also rebounded after the open. Diamond Offshore is higher on an upgrade, lifting that sector. Freeport McMoran and Cliffs Natural Resources are modestly higher this morning. The financials are mixed, relatively flat this morning. JP Morgan and the insurance stocks look good. After the first hour the averages clawed back to the unchanged level. Through the morning the averages inched into the green, but little volume to support the rally ahead of the Federal Reserve meeting. In the afternoon the selling pressure came back following the no change in interest rates and the proceeding interview with the Fed Chairman. In the last hour the selling accelerated with the Dow falling over 60 points while the Nasdaq declined 14 points. Only a few stocks were left in the green. The Dow Jones Industrial Average finished down 80 points, or 0.7%, at 12,109. The S&P 500 slid 8 points, or 0.7%, to 1,287. The Nasdaq Composite lost 18 points to 2,669.19.
June 21, 2011
U.S. stocks started with mild but broad gains Tuesday, supported by expectations that Europe was moving closer to a near-term resolution of Greece's debt problems. The Dow Jones Industrial Average rose 40 points to 12,122 led by Caterpillar and Chevron. The S&P 500 added 5 points to 1,283. The Nasdaq Composite added 7 points to 2,636. The commodities look good this morning leading all the sectors. Even the rare earth metal stocks are higher. The retailers continue to perform well. Best Buy is up 3% after initiating a $5 billion share buyback along with a hike in the dividend. Not bad. Whole Foods is jumping 6% on an upbeat outlook. The grocery stocks are performing great of late. Under Armour and Wendys are higher on upgrades. Carnival reported earnings and lowered estimates, but the news has been priced into the stock. Walgreens is down 6% following earnings. Express Scripts is also lower after Walgreen agreed to drop them for Aetna's pharmaceutical prescription business. In the tech space Apple is rebounding after getting hit the last week. EMC, Riverbed Tech, and F5 Networks are higher on upgrades. Motorola Mobility is lower on a downgrade. The chips are struggling. Freescale Semi is down even though it was upgraded. Micron had their numbers cut, yet the stock is modestly higher. Intel is up a little. The financials are higher, but they continue to struggle. Discover, Progressive, and Duke Realty are modestly higher on upgrades. Jefferies is down 2% after missing estimates. Through the morning the averages slowly rallied, building on yesterday's turnaround. By the lunch hour, the Dow was up over 100 points while the Nasdaq rose 50 points or 2%. A nice rally for once. Lets' hope Europe doesn't screw this up. A minor pullback in the afternoon only accelerated the rally once again. In the last hour the Dow closed off its highs while the Nasdaq remained strong. The Dow Jones Industrial Average finished up 109 points at 12,190, its best day in a week, led by a 3.3% rise in Caterpillar. The S&P 500 gained 17 points, or 1.3%, to 1,295 led by a 2.6% gain in its resource subsector. The Nasdaq Composite gained 57 points, or 2.2%, to 2,687.
June 20, 2011