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  • Market Dips As Bernanke Speaks 0 comments
    Jul 21, 2010 6:25 PM | about stocks: MS, WFC, FCX, AAPL, EBAY, FFIV, QCOM, BIDU, NFLX, ISRG, SBUX, CMG, NUE

    The market started off strongly on strong earnings from MS, WFC, and FCX.  MS ended the day up +6.26% at $26.8; it traded as high as $27.89.  WFC closed only slightly higher, but, did trade up to $27.6.  FCX traded above $68 before closing at $66.06, up +2.71%.

    However, as Bernanke started to give his testimony to Congress, the market sold off quickly.  Most sectors ended in the red.  AAPL, which gave an outstanding earnings report yesterday, closed up only $2.35.

    After the market, a bunch more earnings came in.  On the upside, EBAY (+2.88%), FFIV (+6%), QCOM (+4.73%), and BIDU (+3.23%) reported good numbers and saw positive reactions.  On the downside, NFLX (-9.6%), ISRG (-6.68%), SBUX (-2.66%).

    In the Trading Room and in my Market Forecast, I've said that "[t]his market is still very much range-bound".  We saw the market rally yesterday, only to give back the gains today.

    The Dow was down 109.43 points; SPX fell 13.89 ponts; Nasdaq dropped 35.16 points:

    XLF (financials) was down 1.62%.  OIH (oil services) slipped 2.17%.  GLD (gold) and SLV (silver) continued to sink.  MOO (agriculture) sled 1.02%.  FXI (Chinese ADRs) was basically flat.

    SPX

    SPX fell 13.89 points to close at 1069.59, just below the 1070 level.  Its MACD flattened.

    Nasdaq

    Nasdaq dropped 35.16 points to close at 2187.33, just above its 20-day MA.  Its MACD was slightly lower.

    This market is oscillating in a tight range.  This is also why even after AAPL's superb earnings, I was not particularly bullish yesterday.  Even after more solid earnings this morning, the market was now really able to go higher.  Tomorrow, we have the latest jobless claims numbers, which, as I have said before, I think are pointless to report every single week.  Nevertheless, they are likely to move the market each week.  In addition, of course, we get more earnings reports.  Some notable ones include:  T, CMG, DO, NUE, PNC, MOS, AMZN.  Miners have been reporting well, it'll be interesting to see if NUE can follow.  CMG has risen dramatically this year (from about $90 to over $155).  It has dropped more than $10 since Friday.  Any weakness in its quarter numbers and/or forward guidance could drive this stock down further.

    Good night and HappyTrading! ™ (click to see our Facebook Page)



    Disclosure: no positions
    Stocks: MS, WFC, FCX, AAPL, EBAY, FFIV, QCOM, BIDU, NFLX, ISRG, SBUX, CMG, NUE
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