This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Initial Jobless Claims, QE3, Bruised Banks

Stocks in this article: BAC AA MOV OWW

The 'QE3' talk is likely to continue on Thursday as well, but RDQ Economics was having none of it on Wednesday, going so far as to say 'QE2' wasn't such a good move after all.

"We think QE3 would be a terrible idea since we believe consumers and businesses have been hurt by sharply rising commodity-based inflation, which we think has been a result of Fed policy," the firm said. "From the Fed's perspective, core inflation is now rising rather than falling (as it was when the Fed launched QE2). In addition, we think the Fed would be concerned about the political fallout that could result from further Treasury purchases."

RDQ said it's sticking with "a defensive strategy on equities" for the time being, the same as it suggested on April 1.

While all 30 Dow components fell on Wednesday, Bank of America (BAC) was neck-and-neck with Alcoa (AA) for the worst performing blue chip with a decline of 4.3% on volume of 172 million, second on the Big Board to only Nokia (NOK), which saw a boost in trading interest from the rumor mill.

Underlining just how bad things have gotten in the financial sector, Bank of America CEO Bryan Moynihan moved to assure investors on Wednesday that the nation's largest bank by assets doesn't need raise more capital, but with the stock now having convincingly broken below both its 50-day and 200-day moving averages of $12.17 and $13.17 respectively, it could test November's 52-week low of $10.91 before long. The banks have been called upon to provide some leadership for the broad market for awhile now but shareholders were no doubt hoping it would be in the other direction.

The corporate news calendar is again sparse. Movado Group (MOV) is one of the few companies reporting quarterly results. The average estimate of three analysts polled by Thomson Reuters is calling for a loss of 3 cents from the Paramus, N.J.-based watch maker on revenue of $79 million. The stock closed Wednesday at $16.10, up 2.7% in 2011.

And finally, a big mover in after-hours action was Orbitz Worldwide (OWW), which jumped more than 40% after scoring a small victory in its ongoing legal dispute with American Airlines.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs