Closing Update for Tuesday, July 28: Choppy Seas, Then Rising Tide

4:14 PM, Jul 28, 2009 --

• NYSE down 35.99 (0.6%) to 6,328.67.
• DJIA down 11.8 (0.1%) to 9,097.
• S&P 500 down 2.6 (0.3%) to 979.62.
• Nasdaq up 7.6 (0.4%) to 1,976.

GLOBAL SENTIMENT

• Hang Seng up 1.84%
• Nikkei down 0.01%
• FTSE down 1.25%

DOWNSIDE MOVERS

(-) X swings to loss on lower sales.

(-) MET gets downgrade.

(-) MHP expects deeper revenue.

(-) QLTI reports positive drug data, but loses upside.

UPSIDE MOVERS

(+) ARIA jumps on breast cancer trial data.

(+) SPSS sold to IBM.

(+) VM sold to Sprint Nextel.

(+) THC reports prelim. loss that's in line.

(+) ABR amends financing.

(+) CYTR says tumor fighting candidate shows shrinkage in animal trials.

(+) KFN takes steps to improve liquidity, guides for Street beat.

(+) CSR lifts expectations.

(+) CHKP beats by a penny.

MARKET DIRECTION

Major stock averages chopped in two-directional trade through much of Tuesday's trading day, but the Nasdaq pushed through with narrow gains late in the day. At the final bell, the Nasdaq finished up 0.4%. The broader S&P 500 slipped 0.3% and the Dow Jones Industrial Average fell 0.1%.

Stocks are consolidating what had been an 11% two-week rally and as a reading on consumer confidence came in weaker than expected. Generally weak demand for a Treasury auction, which equates to higher interest rates, also weighed on stock market sentiment.

The Conference Board's index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8.

But earlier, the third reading in recent sessions showing an improving housing market did help to stabilize stocks Tuesday. The S&P/Case-Shiller Home Price index for major metropolitan markets rose 0.5 percent in May from April.

Earnings reports were mixed. Hearings on energy trading were keeping a lid on energy stocks.

Crude for September delivery dropped $1.15 to $67.23 a barrel on the New York Mercantile Exchange. Earlier in the session, the contract hit an intraday low of $66.60 a barrel.

Comments

[robert.b.fe...:]

What, no stick save today? Where are you Boyzzzzzz?

Jul 28 04:38 PM

[Bill L.:]

Insiders must be done selling their shares.


On Jul 28 04:38 PM robert.b.ferguson wrote:

> What, no stick save today? Where are you Boyzzzzzz?

Jul 28 05:10 PM

[Bill L.:]

www.marketwatch.com/st...


On Jul 28 05:10 PM Bill L. wrote:

> Insiders must be done selling their shares.

Jul 28 05:11 PM

[Mad Hedge F...:]

choppy indeed. OK, so they didn’t mention the mosquitoes, the poison oak, or the guy snoring in the next tent on the website. But I’d rather put up with all of that than the absolute dearth of trading opportunities I faced on my return. The S&P 500, the Dow, NASDAQ, the euro, the Australian, New Zealand, and Canadian dollars, gold, copper, lumber, and anything else I like are overbought, bumping up against Fibonacci’s, moving averages, RSI’s, oscillators, and any other technical warning light you want to mention. Only wheat looks cheap, the greatest growing conditions in history knocking a bushel down to the low five dollar handle (click here for the argument at www.madhedgefundtrader...). Natural gas prices are low, not to be confused with cheap, with every uptick getting smashed with a new field discovery. Only a hurricane can save NG. It’s amazing how many people have turned bullish now that everything has gone up for two plus weeks. The only thing that makes sense here is to go short, but not on my first day back. Give me some time to gird my loins and build a risk appetite. And pass the calamine lotion, please.

Jul 29 12:47 PM