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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (10224)	6/22/2006 4:07:13 PM
From: Smiling Bob	Read Replies (3) \| Respond to of 19256

DOW 11019 close- Took another day for full 75-100 drop, but it's here for good reason. Message 22562354 should easily dip and stay well below 11k next week ANN at 41.82 now will fall back under 40 Tue. Nice guaranteed return --- Dow Gives Back Yesterday's Gains Thursday June 22, 3:26 pm ET By Christopher Wang, AP Business Writer Dow Gives Back Yesterday's Gains; Average Falls 58 After Climbing Almost 105 Yesterday NEW YORK (AP) -- Wall Street declined moderately Thursday, giving back much of the prior session's gains as investors once again fretted about interest rates and the economy. A slight rise in weekly unemployment claims met expectations of a weakening job market, but a greater-than-forecast drop in the Conference Board's index of leading indicators stoked concerns about a dropoff in economic growth. Meanwhile, higher oil prices and rising bond yields also weighed on Wall Street's mood. The market resumed its expected pattern of up-and-down trading ahead of the Federal Reserve's policy meeting next week. Stocks have steadied somewhat after falling sharply since May on worries that rising core prices could prompt the Fed to keep boosting rates, even at the risk of stunting the economy. Although investors are certain the Fed will hike interest rates again, they have been nervous about the central bank's opinion of inflation and unwilling to place bets while the outlook remained murky. "The base-building process is going to take a couple months to complete," said Steven Goldman, chief market strategist for Weeden & Co. "We're going to see pockets of strength, pullbacks, rallies. We're hopefully looking for a bottom from which to build a rally later this year." In late afternoon trading, the Dow Jones industrial average sank 58.03, or 0.52 percent, to 11,021.43, after tumbling as much as 93 points earlier. The Dow gained almost 105 points Wednesday. Broader stock indicators were also lower. The Standard & Poor's 500 index was down 6.91, or 0.55 percent, at 1,245.29, and the Nasdaq composite index lost 20.05, or 0.94 percent, to 2,121.15. Bond yields remained inverted as prices fell. The yield on the 10-year Treasury note climbed to 5.2 percent from 5.16 percent late Wednesday, while the 2-year yield rose to 5.23 percent. Crude futures gained ground after the government reported a small increase in gasoline stocks as the peak summer driving season gets under way. A barrel of light crude added 47 cents to $70.80 on the New York Mercantile Exchange. Elsewhere, the U.S. dollar surged against the Japanese yen and was flat versus European currencies. Gold prices were lower at about $585 per ounce. Strong manufacturing and export data catapulted Japan's Nikkei stock average 3.36 percent, its biggest one-day gain in six months. European markets followed suit, with Britain's FTSE 100 adding 0.34 percent, Germany's DAX index gaining 0.55 percent and France's CAC-40 rising 0.6 percent. With few economic reports to guide investors, stocks have drifted aimlessly this week amid persistent fears that rising inflation could prompt the Fed to keep hiking rates despite a slowing economy. Thursday's retreat was poised to leave the major indexes barely changed so far this week. "I'm not seeing today's decline as particularly worrisome," said Ken Tower, chief market strategist for Schwab's CyberTrader. "I think it's more profit taking and a wait-and-see attitude than a return of the real fear factor." In economic news, the Conference Board's index of leading indicators declined 0.6 percent in May, a slightly wider loss than the 0.5 percent drop projected by economists. Wall Street has been wary of the possibility that the economy might moderate too quickly. The Labor Department said the number of jobless claims filed grew by 11,000 to 308,000 last week, just beating economists' estimate of 305,000. The upswing reinforced beliefs that the job market is beginning to weaken. Health-care stocks stumbled after The Wall Street Journal said several major hospitals were scaling back their use of expensive drug-coated coronary stents. Dow component Johnson & Johnson slid 63 cents to $61.16, while Boston Scientific Corp. shed 59 cents to $18.52. The airline sector slumped on news that British and U.S. regulators are probing several carriers over ticket prices and fuel surcharges. British Airways PLC fell $4.44 to $63.35, but United Airlines parent UAL Corp. rose 18 cents to $32.43. Federated Department Stores Inc. reached a deal to sell its Lord & Taylor chain to two real estate investment firms for about $1.2 billion. Federated added 22 cents to $36.02. Bed Bath & Beyond Inc. dropped $2.23 to $34.69 after an analyst said the home retailer issued a weak full-year earnings projection. Declining issues led advancers by almost 3 to 1 on the New York Stock Exchange, where volume of 1.1 billion shares trailed the 1.26 billion shares changing hands at the same point Wednesday. The Russell 2000 index of smaller companies declined 4.24, or 0.61 percent, to 686.43. New York Stock Exchange: nyse.com Nasdaq Stock Market: nasdaq.com