Wednesday brought a record close on the Dow, but a laggard Nasdaq closed red. Financials are still leading the upside, with tech not participating in the broad based rally. Tech has many components, the most watched would be the semiconductors, which rallied today and broke the eight days of consolidation. Left behind was hardware (GHA), Software (GSO) and definitely Disk drives (DDX), which managed to hit a new low on the year intraday. Internets were also red on the day, thanks in part of YHOOÃ¢â‚¬â„¢s lack luster earnings. EBAY was out after the bell and traded higher after the release. Google is still to come later this week.
IBM being a very noted lag on the marketÃ¢â‚¬â„¢s advance today shows some slowing in tech. The S&P 500 closed green by a point, that is not stellar performance. A lot of the talk surrounding IBM was a slowing in tech spending, well that would do some economic damage across the board. Remember if companies slow, they lay- off and downsize. My other concern is how a few weeks ago banks and other lenders were on the trip to the dump with all the subprime concerns and now all the sudden financials are leading this rally. TodayÃ¢â‚¬â„¢s data on loan foreclosures show 1 in every 775 homes in this country are being hit by foreclosures. Alright I get that part of that is normal and that it is California and Nevada being hit the hardestÃ¢â‚¬Â¦so far. But letÃ¢â‚¬â„¢s not forget they were leading this huge housing boom, first up and first down. I am still very concerned we are getting ahead of ourselves with this lack of interest on the potential hit to banks of all sizes, much less the mortgage companies on these loans. At this point the economic data being released we are unlikely to see a rate cut from the Fed, and if anyone is sitting and waiting on that they may be seated for awhile. If anything we may see another increase, hold on to your hats if that comes to fruition.
Crude up just 3 cents to close at $63.13 a barrel after being down as low as $62.75. Gold saw a small increase on the day to close up 80 cents at $693.30. Platinum was getting all the action to see 7 Ã‚Â½ year highs today. Currency also active today with the dollar seeing a big drop.
Economic Data for Week of April 16 Ã¢â‚¬â€œ 20 Thursday 08:30 Jobless Claims, 10:00 Leading Indicators, 10:30 Natural Gas Report, 12:00 Philadelphia Fed, 03:50 SF Fed Bank Pres Yellen speaks, Friday 12:00 Treasury Secretary Paulson Speaks, 12:15 Fed Governor Mishkin Speaks.
Some earnings for the week: Thursday pre market MO, ASD, BAC, BAX, BBT, BLK, BOT, CAL, DHR, DHI, FITB, FCS, HOG, HSY, IGT, MRK, MER, NDAQ, NYT, NE, NOK, NUE, OXPS, BTU, DGX, SGP, POOL, SHW, LUV, STJ, TASR, UTEK, UNP, UNH, WCC, WYE, Intraday AXP, After the bell AMD, COF, CERN, CREE, FNB, FDC, GOL,GOOG, ISRG, ZION. Friday pre market CAT, HON, MAN, MCD, PFE, SAP, SLB, WL, WIT, XRX and nothing of interest after the bell. Keep in mind companies can change days and times of reporting last minute so you should check always if you are holding something reporting.
Compx (Nasdaq composite) closed -6.45 at 2510.50. Support: 2491.94 (fills gap), 2482.17, 2472.35, 2463.76, 2444.44 50dma, 2422.98. Resistance: 2522.63, 2531.42 (years high), 2585.78, 2600.37. Daily chart below