The Week In Review

5/31/10- 6/4/10

June 4, 2010
U.S. stocks opened sharply lower on Friday as investors contended with a disappointing May employment report and the further decline of Europe's common currency. The Dow Jones Industrial Average fell 155 points to 10,099. The S&P 500 Index declined 19 points to 1,083. The Nasdaq Composite was off 40 points to 2,262. The unemployment number is misleading due to the fact that most of the new hires were Census workers. The private sector only hired 40,000 new employees verse estimates of 200,000. That's not good. In the first hour the Dow fell over 200 points and then rebounded. A few stocks look good including Google and Goldman Sachs. No particular reason for either to be higher, but it's a good sign. VMware, Oracle, and Apple all received upgrades, but the stocks remain in the red. Other than Goldman, the rest of the financials are lower. American Express made encouraging comments on business stabilizing, but the stock is lower by 3%. In the retail sector analysts made positive comments on Nike and Aeropostale, but both are lower. McDonalds is lower on news the company is recalling 12 million Shrek glasses becuase of toxic paint used on the outside of the glasses. That's not good. Walmart is lower even though the company announced at their annual meeting a new $15 billion share buyback. Through the morning the Dow pushed lower as the European markets closed. In the afternoon the averages pushed lower. The Dow fell over 250 points below 10,000. The Nasdaq declined 60 points. That economic number was not good today. Through the afternoon more weakness. No bounces today. In the last hour the Dow dropped over 300 points. The Dow Jones Industrial Average finished down 323 points, or 3.2%, to end at 9,931.97, its worst one-day drop since May 20th. The S&P 500 index fell 37 points, or 3.4%, to 1,064. Of the S&P's 10 sectors, industrials fell the hardest, off 4.6%, followed by financials and materials, both down 3.9%. The Nasdaq Composite fell 83 points, or 3.6%, to 2,219. For the week, the Dow fell 2%, the S&P was down 2.3%, and the Nasdaq dropped 1.7%.

June 3, 2010
U.S. stocks lightly pared Thursdays' gains after the government said factory orders gained 1.2% in April and the Institute for Supply Management reported services industries expanded for a fifth month straight in May. The Dow Jones Industrial Average rose 48 points to 10,297. The S&P 500 Index gained 5 points to 1,103. The Nasdaq Composite rose 14 points to 2,295. The retail sector is performing well after better than expected May same store sales. TJX and Saks are up over 2%. Aeropostale is up 7%. AutoNation is up 6% following a big jump in May sales. JoyGlobal is up 4% after easily beating estimates and raising guidance. Priceline is down 2% on a downgrade. Coldwater Creek is down 15% after beating estimates, but then forecasting a loss. In the tech sector Ebay, Texas Instruments, Research in Motion are higher on upgrades. Google looks good today, but Apple is lower. I forgot Apple could move lower. In the financial sector KeyCorp and Charles Schwab are higher on upgrades. In the first hour the averages remain in the green, but off the highs. The commodities are selling off except for ExxonMobil and BP. Through the morning the averages briefly gave up their gains, then rebounded, then sold off again. Entering the lunch hour the Dow and S&P 500 were flat and the Nasdaq remained up 13 points. Google looks good up 2.4%. The commodites are weak except for BP and Transocean. Go figure. In the afternoon the averages sold off then rebounded into the close. The Dow Jones Industrial Average finished up 5 points at 10,255, led by a 1.6% gain in shares of Cisco Systems. The S&P 500 index gained 4 points to 1,103, while the Nasdaq Composite rose 21, or 1%, to 2,302.

June 2, 2010
U.S. stocks began higher on Wednesday, with Wall Street offering a mild bounce back after a two-session losing streak. Stocks gained some ground as Europe's common currency held above a four-year low reached on Tuesday. The Dow Jones Industrial Average gained 49 points to 10,073. The S&P 500 Index rose 7 points to 1,078. The Nasdaq Composite added 13 points to 2,235. Amgen is jumping 7% on the approval of an osteoporosis drug that could generate billions. GlaxoSmithKline is up 2% on an upgrade from Jefferies last night. Plenty of upgrades in the tech sector. Apple, Research in Motion, Jabil Circuit, Cypress Semiconductor, RF Micro Devices, and Ciena are all higher on upgrades. The financials are modestly higher. JP Morgan is higher on an upgrade. The commodities are performing well. Even BP is modestly higher even though Credit Suisse indicated that costs could rise to $37 billion. Ouch. Credit Suisse's target is still $49 a share for BP. In the retail space Coach, Big Lots, and Deere are higher on upgrades. JoS A Bank and Bombardier are higher following better than expected earnings. Polo is lower on a downgrade. After the first hour the averages pushed higher with the Dow jumping 80 points. The Nasdaq rose 16 points. Through the morning and into the afternoon the averages pushed higher with the Dow rising over 100 points. The Nasdaq rose 37 points erasing yesterday's late sell off. In the middle of the afternoon the averages sold off, then reaccelerated with the Dow up 150 points entering the last hour. In the last hour the averages kept improving. Google is retesting recent highs. Bank of America is up 2% on positive comments at a Sanford Bernstein conference. The commodities are pushing higher. Everything looks good. In the last hour the averages accelerated into the close. The Dow Jones Industrial Average finished up 225 points, or 2.3%, at 10,249. The S&P 500 index rose 27 points, or 2.6%, to 1,098. led by a 4.3% jump in the energy sector. The Nasdaq Composite jumped 58 points, or 2.6%, to 2,281.

June 1, 2010
U.S. stocks opened lower on Tuesday after the euro dropped to a four-year low as investors worried about issues including a slowdown in Chinese manufacturing. The Dow Jones Industrial Average dropped 69 points to 10,067. The S&P 500 Index dropped 8 points to 1,081. The Nasdaq Composite declined 12 points to 2,244. The sell off was not as bad as expected and the averages actually rallied shortly after the open. A number of techs look good including the chips on better than expected semiconductor sales worldwide. Apple keeps pushing higher. Google is higher on news they are scrapping Windows operating system. HP is lower after announcing 9000 job cuts to expand enterprise spending. The financials are holding in there. Bank of America and Goldman Sachs are modestly higher thanks to positive comments from FBR regarding the financial regulatory bill being shaped in Congress. Visa is higher on an upgrade. In the retail space, Radio Shack is higher on take over rumors. American Eagle is lower on a downgrade while Finish Line is higher on an upgrade. The dog of the day goes to BP which is dropping 11% after their latest attempt to stop the oil spill failed. Frontier Oil is higher on an upgrade. CSX is up on an upgrade. After the first hour the averages recovered all their losses and moved into the green. A good way to start the week. Through the morning and into the afternoon the Dow improved, rising 70 points. The financials are still quiet. The Nasdaq inched up even though a number of techs look really good. By the middle of the afternoon the averages had given up all the gains. In the last hour the selling accelerated. BP is down 7% on news the U.S. has opened an investigation into criminal charges against the oil giant. Into the close, the averages pushed lower. The Dow Jones Industrial Average finished down 112 points at 10,024. The S&P 500 index fell 18 points, or 1.7%, to 10,024. The Nasdaq Composite dropped 34 points, or 1.5%, to 2,222.

May 31, 2010

Closed for Memorial Day