Stocks began the day today in the red, but bounced off the lows to eke out a gain. The Dow fell below 10,000 but clawed it's way back to close at 10,060 or .2%. The S&P 500 closed up .33% at 1055 and the tech-heavy Nasdaq closed at 2141, up .84%.
The energy sector was lower, however, there were a handful of consumer names that actually rose today: Home Depot (HD), Starbucks (SBUX) and Costco (COST) each gained 2% today. Today's dismal economic news showed us that while durable goods sales rose .3% it's far short of the expected 2.8% increase the economists were expecting.
The stock that interests me today is Opentable (OPEN). They provide computerized reservation and table management systems for restaurants. They closed yesterday below their 50-day MA but today, bounced nicely right back above at $51.00. They've had quite a run this year and there is room for more. In the past 4 weeks, their stock price has increased 6% and year-to-date, their up 100%. I do think a note of caution is warranted -- due to conusmer's ongoing economic woes, this stock has some risk. However, the consumer has struggled all year long and yet, this stock seems to possess some resilience. While I'm not actively trading at this time, I am building a watchlist in the event of a relief rally.
Obligatory disclaimer: This blog is for information only. Past results do not guarantee future performance. All financial decisions involve risk and there are no guarantees. The suggestions above are for informational purposes only and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Wednesday, August 25, 2010
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