On 6th July, 2010 Tuesday after traders sifted through the market for beaten-down stocks, the Dow Jones industrial average broke a seven-day slide. The Dow had dropped 7.3 percent in the past two weeks and on Friday closed at its lowest level since early October. Investors tried to recover some of the big losses that piled up following disappointing economic reports on Tuesday.
After dropping 7.3 percent in just the past two weeks and reaching its lowest level since October, the Dow rose 57 points, or 0.6 percent. The Dow rose as much as 172 points in morning trading but also fell into the red by mid-afternoon. Traders were looking to pick up stocks while they’re still cheap, but the buying was selective and there were more losing stocks than gainers on the New York Stock Exchange. The precipitous modify drew traders expecting to wager the mart bounce.
The Dow is up 57 points at 9,744. The Standard & Poor’s 500 finger is up 5 at 1,028, patch the Nasdaq flower index is up 2 at 2,094. Falling stocks narrowly outpaced those that rose on the New Royalty Stock Exchange. Volume totaled 1.3 1000000000 shares compared with 1.1 1000000000 Friday. Overseas markets mounted after investors found stock prices more attractive and Australia’s central bank issued an upbeat forecast for the country’s economy. Britain’s FTSE 100 mounted 2.9 percent, Germany’s DAX index gained 2.2 percent, and France’s CAC-40 jumped 2.7 percent. Japan’s Nikkei stock average mounted 0.8 percent.
Senior portfolio analyst at Robert W. Baird in Milwaukee, Aaron Reynolds said, “There are pockets of opportunity out there. There are some areas with good valuations.” High-tech and oil service companies were among the market leaders. But retailers slumped amid downbeat comments from analysts and ahead of reports later in the week on June sales. Investors are concerned that a weakening of the economic recovery will keep cautious consumers out of stores.
Brian Dolan, chief currency strategist at Forex.com in Bedminster, N.J., said a rise in Treasury prices made it clear that worries remain. Treasuries have been rallying during the past month as investors worried about where the economy is heading looked for a safe place for their money. “We’ve obviously ratcheted down the outlook and now it’s a question of how much further,” Dolan said, referring to the economy. “From here I would expect to see further weakness.”
Crude oil fell 16 cents to settle at $71.98 a barrel on the New York Mercantile Exchange. Oil service companies rose after a Barclays Capital analyst upgraded ratings for the industry. Halliburton Inc. rose 72 cents, or 2.8 percent, to $26.46. Some of the tech stocks that were pounded in recent weeks had a natural bounce back. Microsoft Inc. rose 55 cents, or 2.4 percent, to $23.82. Intel Corp. rose 28 cents, or 1.5 percent, to $19.48.
Macy’s fell 44 cents, or 2.5 percent, to $17.41, while Home Depot fell 42 cents, or 1.5 percent, to $27.34. The number of stocks that fell narrowly outpaced those that rose on the NYSE, where consolidated volume came to 4.7 billion shares, compared with 4 billion Friday. The Russell 2000 index of smaller companies fell 8.94, or 1.5 percent, to 590.03.
Peter Cardillo, chief market economist at Avalon Partners said an oversold market and gains across global markets on Monday when U.S. markets were closed for the holiday weekend made for a nice technical on Tuesday. The week’s lack of economic news and anticipation surrounding the upcoming earnings season also helped lift the market. Cardillo said, “The ISM Services index slowed, but that’s no news to the market, which has already discounted for slower growth ahead“.