Day Traders Diary
6/2/11
U.S. stocks try to rebound following the biggest one day decline for the Dow Jones Industrial Average this year. The Dow Jones Industrial Average erased opening gains, falling 18 points to 12,272. The Standard & Poor's 500 dipped 2 points to 1,312. The Nasdaq Composite Index gained less than a point to 2,769. The best performing sector so far this morning is the for-profit schools following less stringent rulings from the Department of Education. Corinthian Colleges is jumping a walloping 31%. Apollo is up 13% while Strayer Education is up 23%. Even the Washington Post is up 7% due to the fact they own Kaplan. The retail sector is mixed following May same store sales. Rite Aid and Saks are higher, but most of the large cap retailers are lower. Joy Global is up 6% after raising their outlook. Pier One also raised guidance. The financials are taking it on the chin once again approaching 52 week lows. Bank of America, Wells Fargo, and Citigroup were put on credit watch by Moodys for a possible downgrade. Goldman Sachs is down once again after getting subpoenaed by Manhattan. When it rains, it pours. The techs are trying to rebound. Microsoft, Texas Instruments and Qualcomm are modestly higher on upgrades. Intel is also modestly higher, but that's about it. The commodities rebounded after the open, but then sold off following high oil inventory data. During the first hour the averages fought to stay in the green, but then succumbed to profit-taking. The Dow dropped 70 points. The Nasdaq declined just 3 points. Through the morning the Dow fell over 100 points before recovering in the afternoon. The Nasdaq actually moved into the green in the afternoon. The Dow kept improving reaching the unchanged level heading into the last hour. JP Morgan made positive comments indicating business wasn't as bad as everyone feared. Those comments helped the bank sector recover. In the last hour the Nasdaq remained in the green while the Dow sold back off. The Dow Jones Industrial Average finished down 41 points to 12,248, led by a 1.4% drop in Wal-Mart. The S&P 500 dropped a point to 1,312 while the Nasdaq Composite edged up 4 points to 2,773.All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.