Day Traders Diary

5/31/11

U.S. stocks opened sharply higher on Tuesday thanks to a drop in the US dollar and a jump in the Eurp due to optimism that more financial help for Greece is coming. The Dow Jones Industrial Average rose 120 points to 12,561 with all 30 components in the green. The Standard & Poor's 500 Index added 12 points to 1,343. The Nasdaq Composite gained 28 points to 2,825. The commodities are in the lead with the fertilizers like Potash and Mosaic receiving upgrades. Both stocks are up over a percent. Noble Energy is higher after discovering a new oil patch. Alcoa is also higher thanks to an upgrade. The financials also look good for once. Goldman Sachs is higher thanks to an upgrade. In the tech sector IBM, Google, and Apple look good. Nokia is the dog of the day down 16% after lowering guidance. Another troubled phone company, Research in Motion is down in sympathy. Juniper is down 2% on cautious analyst comments. In the chip space Nvidia and Broadcom were upgraded, but only Nvidia is higher. NetLogic is jumping 2% on an upgrade. Ebay is higher on an upgrade. Intel is higher after announcing plans for a lighter thinner laptop called an ultrabook. The defense space is performing well thanks to an upgrade of General Dynamic. That stock is jumping 4%. In the retail space Big Lots is up 2% on an upgrade. Gap is modestly higher on positive comments. Limited is higher after announcing a one-time special dividend of one dollar. In the entertainment space, DreamWorks is down 3% to a new low following lackluster ticket sales for Kung Fu Panda 2. Through the morning and into the afternoon the averages remained strong, but off the highs. All the Dow components remain in the green, but the broader market is not as strong. A number of financials and commodities have given up their gains. In the last hour the averages pulled back only to rally into the close. The Dow Jones Industrial Average ended the day up 128 points, or 1%, to 12,569. The Nasdaq Composite added 38 or 1.4%, to 2,835. The S&P 500 gained 14, or 1%, to 1,345.20 with all of its 10 sectors on the rise.

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