Stocks Try to Recoup But Morning Gains Evaporate

By DONALD H. GOLD, INVESTOR’S BUSINESS DAILY 

After a promising morning of substantial gains, stocks reversed lower Tuesday and ended with losses.

The S&P 500 fell 0.6%, the Dow Jones industrial average 0.5% and the Nasdaq 0.3%. Volume rose, according to preliminary figures.

The S&P 500 and the Dow had each climbed as high as 0.5%, while the Nasdaq tacked on 1% before the selling began in earnest.

After failing to cobble together a coalition government, Greece now faces a new election next month. At issue, of course, is the country’s dire straits and the austerity measures enacted to try and right Greece’s finances.

German Finance Minister Wolfgang Schaeuble said the vote is really a referendum on Greece’s membership in the euro zone.

Economic news in the U.S. was a mixed bag.

The New York Federal Reserve’s Empire State Manufacturing index jumped to 17.1, reversing a slump to 6.6 in April. Analysts had expected a gain to 10. The Fed described the gain as moderate, but said the shipments index shot up 18 points to 24.1.

Retail sales slowed sharply in April, rising 0.1%, down from March’s 0.8% gain and below analyst views for a 0.1% gain, or 0.2% excluding autos.

April consumer prices also were flat, down from a 0.3% increase in March. Energy and food prices accounted for a large share of the pullback, the Bureau of Labor Statistics reported. Core CPI, minus energy and food, rose 0.2%, equal to March’s gain.

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Indexes Close Near Session Lows; Leading Stocks Also Fall

By PAUL WHITFIELD, INVESTOR’S BUSINESS DAILY 

An attempted rebound failed Monday as the stock indexes sprang off the day’s lows and then sagged in the final 90 minutes.

The Nasdaq and the S&P 500 dropped 1.1% each while the Dow Jones industrial average fell 1%. The NYSE composite lopped off 1.4%.

Volume was lower on both major exchanges, according to unconfirmed numbers.

JPMorgan Chase (JPM) gapped down 3% in volume that was 150% above average. The stock also gapped down Friday, though the loss was 9% and in even stronger volume. Late Thursday, JPMorgan reported a $2 billion loss due to a poor hedging strategy.

Top-rated stocks also were mostly down. On the IBD 50, a proxy for leading stocks, only four issues rose, and all four in meek volume.

Meanwhile some losers retreated in strong volume, including many with a defensive tint.

Discount retailer TJX (TJX) slid almost 4% in more than double its usual volume. The stock closed just under its 50-day moving average. This was TJX’s first close under the line since early October.

TJX is expected to report quarterly results before the open Tuesday. The Street expects a 38% EPS gain to 54 cents a share. Revenue is estimated at $5.75 billion, which would represent a 10% gain.

The retail auto parts group was having a tough day.

O’Reilly Automotive (ORLY) skidded 3% in 57% faster trade. Advance Auto Parts (AAP) plunged 7% in triple volume. AutoZone (AZO) fell 2.5%, though volume was below average.

Industrial supplies retailer W.W. Grainger (GWW) sank for the fourth time in the past five sessions. On Monday, it lost almost 2% in 69% heavier volume.

On Tuesday, big retailers Home Depot (HD) and JC Penney (JCP) report earnings, the same day that key consumer reports come out, including retail sales and the consumer price index.

Stocks Finished Mixed Friday, Lose Ground for the Week

By VICTOR REKLAITIS,
INVESTOR’S BUSINESS DAILY 

Stocks finished mixed Friday, as the Dow Jones industrial average and S&P 500 turned negative around mid-afternoon. The main indexes shook off early losses to trade in positive territory around midday, but then finished well off their session peaks.

The Nasdaq edged up fractionally for the session, while the Dow and S&P 500 both lost 0.3%. Volume decreased from Thursday’s levels on both main exchanges, according to early data. The indexes all sustained losses for a second straight week, as the market correction continued.

Among IBD 50 stocks, Buffalo Wild Wings (BWLD) jumped 5% Friday in active turnover. The sports-bar chain regained its 50-day moving average. It appears to be working on a new base.

Dick’s Sporting Goods (DKS) lost 2% in big trade, but it had been down as much as 4%. The retailer closed below its 50-day line for the first time since January. Dick’s plans to report quarterly earnings Tuesday. It has a strong IBD Composite Rating of 95, but isn’t part of the latest IBD 50 list.

Headlines were mixed Friday. JPMorgan’s (JPM) report of a massive trading loss late Thursday weighed on the market. On the upside, a consumer sentiment figure improved more than expected, and an inflation-related figure showed a decline.

On Monday, Agilent Technologies (A) and Groupon (GRPN) are among the companies slated to report quarterly earnings. Agilent sports a mediocre IBD Composite Rating of 60, while Groupon’s is a 15, near the worst-possible 1.