Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Market Recap: Stocks Fail To Follow Through


Hoofy was happy with a strong day but the gains gradually slipped away.

Stocks were flat in today's trading. The Dow Industrials dropped -46 points, or -0.38% to 12,110, the S&P 500 lost -12 points, or -0.90% to 1,308, and the Nasdaq Composite fell -12 points, or -0.53% to 2,243.

Many were watching for follow through after yesterday's strong session, but news of the resignation of Eliot Spitzer overshadowed the markets. Stocks trended higher for the early part of the day but faded into the closing bell. Notable decliners included the banking stocks. Morgan Stanley (MS) fell nearly -3.5% to $41.01. Wachovia (WB) dropped -5.8% to $28.05, Lehman Brothers (LEH) fell -3% to $44.95, and Bear Stearns (BSC) closed -2.2% to $61.58.

Toddo mentioned keeping an eye on Bear Stearns. "[It] has qualified as one of our top-tier tells based on the focus it's garnered in the investment community," he said. "I don't have a horse in that race---it seems mighty crowded to me--but I'm watching it. I will say this--where's there's smoke, there's usually fire. In the absence of news, however, perception can shift that it's been snuffed out." For more read today's Random Thoughts.

Tech shares settled mixed. Apple (AAPL) fell -1.22% to $125.80. Research In Motion (RIMM) added +0.55% to $101.25. Google (GOOG) was flat, closing -0.04% to $439.54. and Garmin (GRMN) finished +4.72% to $58.75.

Housing stocks traded lower. Hovnanian (HOV) gave up nearly all of its gains from the prior session to close -9.6% to $9.04. Other decliners included Pulte Homes (PHM) -5.6% to $11.79; D.R. Horton (DHI) -4.8% to $13.64; and KB Home (KBH) -5% to $23.07. The broader Homebuilding ETF (XHB) fell -3% to $19.20. For more context on the housing market, read Professor Kevin Depew's Five Things You Need To Know.

In commodities, crude oil hit new highs adding +1.32 to 110.07. Gold gained +7.50 to 983.50. Silver added +0.344 to 20.020 and copper finished +4.30 to 384.20.

Late in the day, news of the Gulf Cooperation Council, or GCC, potentially abandoning the dollar peg appeared on the tape. Professor Lance Lewis said on the Buzz the news had to do with the lift in commodities.

"If the GCC punts its dollar peg in favor of a peg to euros or a basket, then OPEC begins to price oil in euros de facto…. With the Fed set to ease another 75 bps next week, it's going to be extremely difficult for the GCC to maintain its peg to the dollar given its already soaring inflation rate."

The dollar index fell -0.949 to 72.328. For more, see Mr. Practical's Can The Fed Go Bankrupt.

For more Buzz insight, check out Minyanville's Buzz Bits.

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: AAPL, BNI, IBM, MFLX, IYT, NCTY, PWRD, STV, HUM, QQQQ, Crude, Gold

Some bearish trade or investment ideas: SLB, AXP, FXI, Dollar

Let's see if the follow-through follows through tomorrow. Have a great night.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos