The Dow fell 19 points, in light volume, or 0.2%, to 10,948. The blue-chip index briefly rose to 10,998 -- not quite hitting the psychologically important 11,000 level. Keep in mind, the highest close for the blue-chip index this year was 11,205, on April 26.
The S&P 500 fell almost 2 points, or 0.2%, to 1,158, while the Nasdaq rose 3 points, or 0.1%, to 2,383. The CBOE Volatility Index (commonly referred to the fear index) rose above 21. Stocks in the telecom, materials and consumer staples sectors fell, while consumer discretionary and technology rose. The dollar, gained additional ground against the euro. Meanwhile, gold stocks fell on the rise of the dollar, with CBOE Gold Index falling about 3%.
In economic news, U.S. consumer credit outstanding fell by $3.3 billion in August after falling $4.09 billion in July as credit card debt continued to fall. Also, jobless claims fell by 11,000 to 445,000, for the week ended Oct. 2. This was reported to be the lowest level in three months. It's also below the that critical level of 450,000, which is better than the poll released by Breifing.com, which projected first-time claims for jobless benefits would fall to 450,000 new claims. The big report comes out Friday with the release of nonfarm payrolls news by the U.S. Labor Department. Gallup is projecting a sharp increase in unemployment for September. They actually have an estimate that puts the unemployement rate of 10.1% without the seasonal adjustment.
Today's stock pick of the day is Zion Bancorporation (ZION). They are a financial holding company, operating eight commercial banks with almost 500 domestic branches in the U.S. I like their chart formation right now. I think it's at a good spot right now to accumulate shares ($21-$22 range) and with potential to step up to the $24-$25 range. I also like Citigroup (C) in this space. There looks to be some institutional buying in the past several sessions. A good price to accumulate shares would be around the low $4 range with a first target to almost $5.
Stay cautious and happy trading! Take some time this weekend to check out Wall Street Survivor! It's free to sign up and play. Compete for cash prizes every week and month -- you can even set up a contest. Check it out below:
Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.
Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.
No comments:
Post a Comment