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Tech Trying, Blue-Chips Lagging

|Includes: Kimberly-Clark Corporation (KMB)
1:00pm (EST)

Futures were pointing towards a slightly higher start but were fading as we went to press this morning which led to a relatively quiet open. The bulls and bears are trying to establish positions ahead of a busy week with both sides taking shots in the first half of today’s action. After starting off flat, the market has slowly drifted into negative territory as we head into the second half of trading with Tech showing a little strength.

Higher commodity prices continue to weigh on profits for some companies. Kimberly-Clark (KMB, $64.01, down $2.04) reported earnings and said they couldn’t raise prices fast enough to pass on costs to consumers. The company beat Wall Street’s forecasts by reporting $1.09 a share on revenue of $5.03, versus expectations for $1.01, on revenue of $4.98 billion. However, shares are down 3% after they lowered guidance going forward.

The dollar remains weak and continues its freefall. Gold is up $8 cents to $1,512 an ounce while silver has added another 23 cents to $46.31 an ounce. Wow. Impressive…silver has been a hard trade to fade and we said prices could be going to $50.

As far as the market, the Dow is down 34 points to 12,472 after trading up to 12,506 and has been in the red for the majority of the day. The day after Easter hasn’t been too bullish, historically, so we weren’t surprised to see a little back testing today.

The S&P is lower by 3 points to 1,334 and has only been fractionally higher this morning. The index has traded to a low of 1,331 as the bears try for 1,325 again. The bulls are trying to bust 1,345-1,350.

The Nasdaq has been the stronger of the three and got off to a decent start before fading. Tech traded up to 2,825 but is currently making a comeback as the index is up 2 points to 2,322.

We established a couple of new positions for the week so let’s go check on them.