Stocks fluctuated around today, first starting higher, then heading lower, before ending the day right around unchanged. The Dow finished down 0.25 points, the Nasdaq finished weaker by 11.10 points, and the S&P 500 closed down 1.57 points. Volume was light on the exchanges today as investors seem content to wait for direction.
Though the overall market was flat, there were some strong sectors and some lagging sectors on the day. The transportation sector, which was the strongest secotor yesterday, was the weakest today. Union Pacific Corporation (NY
SE: UNP) fell 2.84% leading the rails lower on the day. Recent winners from the NASDAQ also were weak today. Crocs Inc (NASDAQ:CROX), which has had a brilliant run over the past year, fell 2.48% on the day. Apple Inc. (NASDAQ:AAPL) fell by 1.1%, consolidating some of its gains from the past 3 trading sessions. Children's Place Retail Stores Inc (NASDAQ:PLCE) plunged 17% after the company guided earnings estimates lower and announced that its liscense agreement with Disney could be in jeopardy.
The energy sector was the strongest on the street today as natural gas and gasoline futures rebounded somewhat today. Halliburton Company (NYSE:HAL) shares rose 2.36% today on very heavy volume, while Weatherford International Ltd. (NYSE:WFT) shares jumped 4.16%, extending yesterday's gains. Healthcare companies were also strong on the day with Amgen Inc (NASDAQ:AMGN) gaining almost 2%, and Medtronic Inc (NYSE:MDT) gained 1.75% after approving a quarterly cash dividend of .125 per share.
Today's action could be viewed in two different ways. On the one hand, after last night's investment from Bank of America into struggling lender Countrywide many strategists felt the rally could continue, but it didn't. On the other hand, after such a positive day yesterday, the fact that we didn't give it back was at least somewhat encouraging. I tend to think of today as being slightly disappointing.
The next few weeks will be interesting in the financial markets. The markets will be waiting for any hint of more breaking news in the credit markets, and listening to anyone with an opinion on the Fed. August may stay fairly quiet, but the leadup to the Fed meeting in September will certainly be worth paying attention to.
Comment Preview