This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Rainy Days and Mondays for Market: Dave's Daily

Stocks in this article: IBM XLK C BAC GS KRE KBE



The Germans threw a monkey wrench into the EU "fix" once again asserting that Sunday's deadline for a credible plan wasn't certain. This led to a sharp decline in stock prices since the "idea" that a plan was going to be implemented was priced-in with last week's short squeeze. Friday after the close of trading it was announced that the U.S., in addition to other members, were not willing to use the IMF for any EU rescue with $350 billion. That was a blow to EU forces hoping someone else would bailout them out of their troubles. Add to this the often reliable short-term overbought McClellan Oscillator and it was likely we might sell-off anyway.

The poor Empire State Manufacturing Survey (-8.48 vs consensus -3.25 and prior -8.82) didn't help matters for bulls Monday. Meanwhile Citigroup (C) beat expectations due to an accounting adjustment and Wells Fargo (WFC) missed expectations causing financials to fall into the red. Much watched Goldman Sachs (GS) and Bank of America (BAC) will report earnings Tuesday. On a related matter, and without much surprise, HFTs (High Frequency Traders) are now the dominant force in program trading volume on the NYSE as outlined in this report.

IBM reported earnings after the bell of $3.19 ($3.28 after adjustments) on revenues of $26.16 billion versus $26.26 billion expected. The stock continued to sell-off slightly in extended trading. Apple (AAPL) will report earnings Tuesday ($7.30 expected) as will Intel (INTC expected $.61) among many others.

Gold prices finished down roughly $10, the dollar was higher versus the euro on the German news. This in turn led to a decline in commodity prices overall while bonds were sharply higher on the stock sell-off.

Forthcoming may not be able to overwhelm the ongoing EU drama and disappointments. Low levels of confidence and high levels of uncertainty aren't allies for stock bulls.

As stated, stocks were lower taking the major averages back into the red again for 2011. Volume was quite light given the selling compared with previous periods while breadth was negative.

 

You can follow our pithy comments on twitter and join the conversation with me on facebook.

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

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