• Home ::
• Fundamental ::
• Market View ::
• The Dow Futures Report

• Send
• Print
• Add To
• Rss

The Dow Futures Report

4b1a94ce-67f6-4c3c-bc86-286acc449529

5

0

US stocks fall for second session

Wed, May 13 2009, 06:05 GMT
by Paul Brittain

Alaron

US STOCKS FALL FOR SECOND SESSION, RECOVER FROM LOWS AS PROFIT TAKING CONTINUES IN FINANCIAL, TECHNOLOGY SECTORS.

US EQUITIES fell for a second day, but closed well off the lows of the session, as continued profit taking in financials and technologies, spurred by concerns regarding dilution of shares through new equity issues, managed to overcome gains in the energy and mining sectors after crude oil traded above $60.00 and commodity prices rallied on a weaker US Dollar and improving economic sentiment.

Equity investors continue to reassess their risk tolerance as the economic outlook is entering a period of relative uncertainty. The surprisingly positive earnings season has essentially passed and the next categories likely to capture investor sentiment will be inflation concerns and the sustainability of global recovery beyond the days when government s offer unprecedented levels of stimulus. This is not to say that a negative outcome for this period is inevitable.
The suggestion here is merely that clear economic pictures in this dynamic environment are fleeting at best. It remains a traders rather than an investors market on the surface for the near term. Patterns do appear to be forming that could lead to a rebuilding of sustainable trends and manageable volatility.

Healthcare, mining, and energy stocks were among the best performing sectors today and managed to lift the major indices off of their worst levels of the day.
Additional support for equities came from comments by former Fed Chairman Alan Greenspan. Mr. Greenspan stated in his testimony that he sees the bottoming of the housing market as “very close” and recession challenges being aggressively met. Of the major indices, the Dow was the only one to close in positive territory, helped by those increases in defensive and blue chip stocks.
Pfizer, Coca Cola, and Philip Morris were among the best performers.

Technically, June Dow Futures were somewhat out of line with the other major indices due to strong performance by several of the key stocks within the index.
The contract continues to skirt near daily overbought indicators. Continued of the pullback that began on Monday should find initial support at 8275, with a stronger level of support setting up at 8126. Upward resistance target sets up at 8554.

Published on  Wed, May 13 2009, 06:09 GMT