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Out of Steam
Dow Jones Industrial Average’s rally went out of steam on Tuesday as the index fell 17.90 points or
0.15% to end at 12,018.63. S&P 500 index also edged lower to 1,293.77, down 4.61 points or
0.36%. Tech-heavy Nasdaq Composite was settled down 8.22 points or 0.31% lower at 2,683.87.
VZ topped the Dow 30 with 1.34% gains, while AXP came in second with 0.97% and BA filled in the
third spot as the aircraft manufacturer added 0.91% on Tuesday. On the downside, BAC, GE and
TRV were the bottom three with declines of 1.21%, 1.17%, and 1.14%, respectively.
With no significant economic data released, stocks took cues from the oil prices. US light crude for
April delivery ended at $104, up 1.6%, while the contract for May delivery finished at $104.97, up
1.8%. Brent crude for May delivery however, finished 74 cents higher at $115.70. Gold prices were
stable with spot gold ended up 0.1% at $1,425.95/oz. while the contract for April delivery finished
up 0.1% at $1,427.60/oz.
Wednesday will present new home sales data for February which is expected to increase from 284K
to 290K. No other data is expected on Wednesday, so it seems that the market will again, take the
cue from the Middle East tensions and the global oil prices.
Corporate News
DD’s ratings have been affirmed by Fitch at ‘A’ with STABLE outlook. Fitch sees positive impact on
DD’s operations should it acquire Danisco. Danisco’s industrial enzyme business, a 33% contributor
of total company’s 2010 revenues should bring larger scale and production capabilities to DD.
HPQ updated its situation after the Japan’s quake, saying that although no offices in Tokyo
suffered major structural damage, its office in Sendai was hit by significant interior damage and
stays closed. Also, some components of its products have been obtained from Japanese suppliers
such as printer engines and toner. Elsewhere, HPQ agreed on a services agreement with Nevada
Division of Health Care Financing and Policy to strengthen Medicaid operation. The contract worth
$176 million and spanning 5-year period.
IBM bid for TRIRIGA, Inc. a provider of facility and real estate management software solutions.
No financial terms were disclosed.
JPM could earn around 50 basis points on its loan to T worth $30B for acquiring T-Mobile.
According to Rochdale’s Dick Bove, JPM could gain $500M from the deal. Meanwhile, JPM’s
Chase unit is ending its debit card reward program starting July 19th.
MMM has been awarded $4.4M over the course of three years by the US Department of Energy.
The agreement was a part of SunShot Initiative which aims to reduce total costs of photovoltaic
solar energy systems by around 75%.
XOM gets U.S. deepwater drilling permit for Gulf of Mexico.
1 .DJI 12,018.63 (-17.90 ● -0.15%) .SPX 1,293.77 (-4.61 ● -0.36%) .IXIC 2,683.87 (-8.22 ● -0.31%)
March 23rd 2011
I recommended entering LONG DD back in early March at $51.70 with PT at $59.06, and the trade
should have been filled as the recent low was at $51.30. As DD rebounded off its EMA-50, it is now
eyeing the return to at least $56.19, the recent peak. MACD has curled up, EMAs stay up and the RSI
has returned above its oversold level. HOLD long with PT at $56.19 first and $60.27 afterwards. Risk
below $50.01.
2 .DJI 12,018.63 (-17.90 ● -0.15%) .SPX 1,293.77 (-4.61 ● -0.36%) .IXIC 2,683.87 (-8.22 ● -0.31%)
March 23rd 2011
3 .DJI 12,018.63 (-17.90 ● -0.15%) .SPX 1,293.77 (-4.61 ● -0.36%) .IXIC 2,683.87 (-8.22 ● -0.31%)
March 23rd 2011
Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be reliable, but there is no assurance or guarantee regarding its
completeness and accuracy. The author accepts no responsibility or liability arising from any use of the report.
4 .DJI 12,018.63 (-17.90 ● -0.15%) .SPX 1,293.77 (-4.61 ● -0.36%) .IXIC 2,683.87 (-8.22 ● -0.31%)