Day Traders Diary

3/10/11

U.S. stocks drop like a rock on the open after early-morning data on jobless claims and the trade deficit added to worries that the global recovery could be slowing. The Dow Jones Industrial dropped a quick 182 points to 12031 with all 30 components lower. The S&P 500 sank 21 points to 1,299. The Nasdaq dropped 40 points to 2700. The bears are in full control this morning as something is irking the bulls this earnings. Rare earth metal Molycorp is up 2% after reporting a modest profit. The rest of the commodity sector looks awful with many stocks down 2, 3 or even 4%. Valero is down 5% after agreeing to buy a Chevron oil plant for $2 billion. Chevron is down 2%. The techs keep pushing lower. Apple, Google, IBM, and Research in Motion are down sharply. IBM received a third upgrade in as many days. LSI Logic is one of the few techs higher on an upgrade. In the retail space Green Mountain Coffee is jumping 32% after Starbucks agreed to sell their coffee through the Green Mountain K-cup package. Starbucks is up 8%. Smithfield Foods is up a percent following earnings. GM is getting hit down 3.5% after their CFO stepped down. Four dollar oil is also not helping things. During the first hour the averages kept pushing lower breaking through resistance in the S&P at the 1300 level. Through the morning the Dow fell over 200 points falling below 12000. Only McDonalds is higher within the Dow. The Nasdaq dropped over 50 points below 2700. The S&P 500 dropped below 1300. Not many stocks are left in the green. During the lunch hour the averages improved a little bit only to sell off once again on concerns of protests in Saudi Arabia. In the last hour more selling. The Dow Jones Industrial Average closed off 228 points, or 1.9%, at 11,984, its worst point drop since Aug. 11 and its first close below 12,000 since Jan. 31. The S&P 500dropped 24 points, or 1.9%, to 1,295, the first time since Jan. 31 it closed below 1,300. Energy and materials stocks led declines. The Nasdaq Composite slid 50 points, or 1.8%, to 2,701.

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