Closing Bell market update (Tuesday)
HTMl version with added features and news links:
bradhill.com
STEADYING THE BOAT
The Dow reverses early losses and the Nasdaq pulls back from yesterdays' record high.
Although the markets faltered today, it could have been much worse. In fact, it was for a while, as the Dow flirted with triple-digit point losses until money floated into the dip. DJIA and Nasdaq leaders (including Microsoft, Intel, Cisco, Home Depot, and Wal-Mart) remained strong, preventing the market's broad numbers from falling too far underwater. Optimism surrounding tech companies in general continued, catalyzed by a prominent industry analyst's optimistic remarks about the semiconductor sector.
Financial stocks continued their choppy ride, influenced by uncertainty over whether Brazil will be able to correct its fiscal deficits. The troubled South American country will vote tomorrow on economic reform legislation.
FOLLOW-UP: Federal Express (FDX), which benefited yesterday from a positive articel in Barron's over the weekend, linking the company to the e-commerce explosion, traded in a narrower range today, but ended 1.5 percent to the green. Airborne Freight (ABF), meanwhile, had been riding on FDX's coattails until today, when it received a Merrill Lynch recommendation and rose almost 6 percent.
QUOTES: quote.yahoo.com
SECTOR WATCH: Red ink spilled over most of the industry sectors today, as Gold and oil service stocks, the upside leaders yesterday, led today's reversal. Banks and brokerages didn't celebrate today either. On the upside, Internet companies balanced out positively, though mixed, and semiconductor companies continued looking good.
CBS MarketWatch Industry Indexes:
cbs.marketwatch.com
TIDBITS: Beyond.com (BYND), an online retailer, picked up steam today in the wake of its first television advertising campaign. We can only hope the company's strategy doesn't include stooping as low as Onsale's ads, which feature shooting rodents out of a cannon against a wall. BYND rose 2 5/8, picking up almost 12 percent.
QUOTE: quote.yahoo.com
TECHNICAL ANALYSIS: Let's talk Nasdaq. The tech-oriented index reached a new closing high Monday, and a new intraday high today before pulling back slightly. It has gained 45 percent since its low on October 8. During this relentless rally, index internals haven't looked particularly favorable, with declining stocks often matching or exceeding advancing stocks. The answer to this conundrum lies in how the index is weighted: By market capitalization. Three companies (Microsoft, Intel, and Cisco) account for 25 percent of the index, so their stock movements have a strong influence. This is called a "narrow-based rally," and usually makes analysts nervous.
CHART: bradhill.com
NEW FEATURE:
Beyond the Bell -- a weekly look at long-term investments
by Lita Epstein
bradhill.com
LOOKING AHEAD:
Friday: Producer Price Index (PPI), released by the Department of Labor, 8:30 am.
biz.yahoo.com
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