The Week In Review
8/24-8/28/09U.S. stocks opened higher on Friday, with information technology shares fronting the gains after better-than-anticipated earnings from Dell and raised guidance at Intel. The Dow Jones Industrial Average added 25 points to 9,606. The S&P 500 Index climbed 6 points to 1,037, while the Nasdaq Composite advanced 28 points to 2,056. Intel is up 4% and Dell is up 6%. The good news from the two tech titans is lifting the whole sector. Microsoft is up 2.5%. Marvell Tech is up 6% on earnings. Corning is modestly higher on good industry data for LCD sales. More earnings from the retail sector. J. Crew is jumping 6% after beating estimates and receiving an upgrade. Tiffanys is up 7% after beating estimates and raising guidance. William Sonoma is up 4% on an upgrade. After the first half an hour, the rally fizzled. The Dow fell into the red. The Nasdaq gave up half its gains. The fertilizer stocks are lower following downgrades at UBS. PetroChina is modestly lower as profits declined year over year. The financials are holding firm. Citigroup is up 6%. AIG is up 13% today and up over 100% in the last month. Through the morning the averages moved sideways with the Dow modestly in the red and the techs and Nasdaq holding in the green. In the afternoon, more of the same. The financials and techs are holding firm at the unchanged level or modestly in the green. In the last hour, the averages slowly improved. Resilient. The Dow Jones Industrial Average finished down 36 points at 9,544, up 0.4% from the week-ago close. Prior to Friday's close, the blue-chip index closed higher for eight sessions in a row. The S&P 500 Index slipped 2 points to 1,028, leaving the broad market gauge up 0.3% for the week. The technology-laden Nasdaq Composite added a point to rest at 2,028, leaving it with a weekly gain of 0.4%.
August 27, 2009
U.S. stocks declined on the open following a government reported that the recession eased in the second quarter, but fell for a fourth consecutive quarter for the first time since the Great Depression. The Dow Jones Industrial Average slid 3 points to 9,523. Boeing is bucking the trend up 8% as the production of their dreamliner 787 is back on track. The S&P 500 fell fractionally to 1,026, while Nasdaq dipped a point to 1,636. Plenty of news in the retail sector. Guess is up 4% on better than expected earnings. American Eagle is unchanged on in line earnings. William Sonoma, Guess, and Bed Bath & Beyond are higher on upgrades. A few financials are trading higher. Toronto Dominion is up 3% on better than expected earnings. Citigroup is modestly higher on news hedge fund manager, Paulson has acquired a 2% stake in the banking giant. The rest of the financials are modestly lower. Toll Brothers is down 2% on a bigger than expected loss. After the first half an hour, the averages pushed lower. The Dow dropped 70 points. The Nasdaq declined 30 points. Volume remains light. Through the morning the averages slowly recovered. During the lunch hour, the averages snuck into the green. The financials are perking up. Citigroup is now up 8%, but AIG is up 24%. Wow, what a move. Through the afternoon, the averages crept higher. In the last hour, the averages held their gains. Resilient market. The Dow Jones Industrial Average finished up 37 points at 9,580. The S&P 500 Index gained 2 points to stand at 1,030, while the Nasdaq Composite added 3 points to close at 2,027.
August 26, 2009
U.S. stocks dipped at Wednesday's start, with energy shares weighing on the broad market. Better than expected durable good sales did little to stimulate the markets. The Dow Jones Industrial Average fell 12 points to 9,526. The S&P 500 declined 2 points to 1,025, while the Nasdaq Composite shed a point to 2,022. A quiet start to the day. Very little news this morning. On the earnings front, William Sonoma is jumping 13% on better than expected earnings. DSW and Dollar Tree are both up over 6% after beating estimates. At 10 o'clock better than expected home sales numbers brought the averages back, moving into the green. The financials and home builder stocks all rebounded. Northern Trust and Bank of New York are lower after having their numbers cut at JP Morgan. The Dallas Fed official declared the Great Recession is over, but expected no major economic rebound for the forseeable future. Through the morning the averages gave up the gains, but no major sell off. In the afternoon, like the last three days, the averages drifted lower. But in the last hour the averages held in there. Resilient market. The Dow Jones Industrial Average finished up 4 points at 9,543. The S&P 500 Index maintained a fractional gain to stand at 1,028, while the Nasdaq Composite rose less than a point to close at 2,024.
August 25, 2009
U.S. stocks started higher on Tuesday, with the Dow Jones Industrial Average extending gains into a sixth session, after President Obama renominated Ben Bernanke as chairman of the Federal Reserve, and home pricing data proved better than expected. The Dow Jones Industrial Average gained 37 points to 9,547. The S&P 500 added 4 points to 1,030 while the Nasdaq Composite advanced 6 points to 2,024. The surprisingly good housing data is helping the financials and home builders. Mastercard is higher on an upgrade. Blackrock is one of the few financials lower following a downgrade due to valuation. A number of earnings this morning from the retail sector. Chicos, Big Lots, and Burger King are all up 10% on earnings. Sanderson Farms and Staples are modestly higher on earnings. Costco and Lowes are higher following upgrades. The techs are performing well. Google is higher on an upgrade. At 10 o'clock, better than expected consumer confidence numbers sent the averages to new highs. The Dow jumped 100 points above 9600. The Nasdaq improved by 20 points to 2038. The good news keeps coming, but the rally started to fizzle. At the end of the first hour, the Dow remained up by just 32 points. The Nasdaq was up 5 points. Through the morning the averages rebounded. The Dow hovered just below 9600. Resilient. In the afternoon, similar to yesterday, the averages pulled back toward the unchanged level, but they remained in positive territory. The Dow Jones Industrial Average extended its winning streak into a sixth consecutive session, finishing up 30 points at 9,539. The S&P 500 Index added 2 points to close at 1,028, while the Nasdaq Composite climbed 6 points to end at 2,024.
August 24, 2009
U.S. stocks on Monday started higher, extending gains into a fifth day, as Federal Reserve Chairman Ben Bernanke and other central bankers around the globe bolstered optimism on the economic recovery. The Dow Jones Industrial Average rose 47 points to 9,553. The S&P 500 Index added 6 points to 1,032. The Nasdaq Composite advanced 6 points to 2,027. The amazing run keeps going. The financials keep pushing higher even as analysts keep making cautious comments. Dick Bove expects another 150 to 200 banks to fail in the next year, but the market doesn't seem too concerned. Capital One and American Express are both up over 2% on upgrades. Citigroup and Bank of America are both trading at new highs for the year. The techs are performing well. Dell is up 3% on an upgrade. AMD is up 8% on an upgrade. Google, Apple, IBM, and Microsoft are higher as well. The retail space is mixed. Sears is down 2% on a negative article in Barrons. Chicos and American Eagle are lower even though they were upgraded. Black & Decker and Guess are higher on upgrades. The diamond of the day goes to Charlotte Russe up 25% on a private equity take over. After the first hour the averages pushed higher led by the financials. Through the morning the averages remained strong, but off their highs. In the afternoon, the rally unraveled with the major averages giving up all their gains. But no major sell off. Everyone expects a correction, but nothing yet. The Dow Jones Industrial Average gained 3 points to close at 9,509. The S&P 500 Index fell fractionally to 1,025, while the Nasdaq Composite fell 2 points to 2,017.