Tech Sector Drags Down DJIA
The Dow traded in positive territory several times today, but headed south after lunchtime, finding its first loss in the past five sessions.
The Dow Jones Industrial Average (DJIA – 13,548.94) spent time on both sides of breakeven today, seeing an intraday high of 13,588.73, and a session low of 13,510.93. But by the time the dust settled, the Dow found itself down 8.06 points, or 0.06%. American Express Company's (NYSE:AXP) earnings-related deficit of nearly 3% headed the index's 11 underperforming issues, while The Travelers Companies, Inc. (NYSE:TRV) gained 3.6% on a better-than-expected quarterly report, pacing the 18 winning blue chips. The Procter & Gamble Company (NYSE:PG) remained unchanged.
Both the S&P 500 Index (SPX – 1,457.34) and Nasdaq Composite (COMP – 3,072.87)turned lower today, ending a their three-session uptrend. The SPX slipped 3.57 points, or 0.24%, while the COMP retreated 31.10 points, or 1%. This worst performance of three benchmarks was highlighted by Google Inc's (NASDAQ:GOOG) & Microsoft Corps (MSFT) "premature" earnings release.
The CBOE Market Volatility Index (VIX – 15.03) aka Fear Index edged south by 0.3%, but bounced from its session low of 14.68.
ANALYSTS' QUOTES:
"Say what you want about technology lagging today. The reality is, tech has performed poorly for nearly a month now. What stood out to me is that housing once again bucked the trend and had a good day. Some wise advice that is easier said than done is to play the trends until they don't work anymore."
"My friends, tech is going down and housing is going up. I have no clue how that will end, but it's reality. And as traders, it's our job to trade the major trends."
“As we saw in Google’s report, there are lots of high expectations in some of these widely held names, and when they don’t deliver, they can get hit pretty hard.”
“The PC market was challenged this quarter. In addition to a tough economic environment and competitive pressures, OEMs [original equipment manufacturers] drew down their Windows 7 inventory as they began to transition to Windows 8.”
”The clear driver on the quarter was PCs, shipments of which declined between 8% and 9%. This hurt Windows as well as Microsoft business division revenue.”
GOODLUCK & HAPPY TRADING
No comments:
Post a Comment