After an upward shot at the open and a pretty violent flip to the downside, the market's major indices have been floating in and out of the red and green this morning, but lately they were mostly a touch lower.
By midsession, the major indices were mixed, with the
Dow Jones Industrial Average
up 27 at 10,351, while the
Nasdaq Composite Index
was down 21 to 3184 and the
was up 1 to 1383.
The flip-flopping is due to several things. First, a lack of conviction after a harrowing week of 100- and 200-point swings has knocked the wind out of many Wall Streeters.
Bill Meehan, chief market analyst at
said that the market's reaction to yesterday's
news, which put a serious dent in some unrelated sectors and basically took out the entire market, is a sign that "this is a very sickly market."
analyst Judah Kraushaar lowered his estimate for Goldman's earnings and said that Goldman, itself, was uncomfortable with the Street's earnings estimates.
For more on Goldman's woes, see
Two: not many investors are even around today as many have ducked out ahead of this Memorial Day weekend.
"We should see less and less volume as the day goes on. Volume will just sort of dry up as participants take off and do the beach thing," said Doug Myers, vice president of equity trading
And three, this morning's data didn't really abate economic and interest-rate uncertainty. The
durable goods orders came in surprisingly cool, with orders declining at the fastest rate in more than eight years. But the numbers are a very volatile series, so it's hard to get a good read on one month's numbers. And these were countered by personal income and spending figures, up 0.7% and 0.4% in April. For more on today's durable goods orders, see this
The market probably won't get a solid indication of whether the economy has really slowed until next week's jobs numbers come in. Fears the
may still tack on another 100 basis points before the year's end are alive and kicking.
In NYSE trading, brokerage and financial stocks were rebounding after spinning lower early yesterday on the Goldman news.
Goldman Sachs was off 2 3/4, or 3.8%, to 70 1/4, after losing 7, or 8.8%, yesterday.
American Stock Exchange Broker/Dealer Index
was off 3.8% and the
Nasdaq Financial-100 Index
was off 20 to 3079.
was taking a beating after announcing that it expects its second-quarter earnings to fall 4 cents to 6 cents below analysts' estimates. The company's shares were recently down 3, or 28%, to 7 9/16.
In tech and telecom land, some bellwethers were showing strength.
were heading higher, while
were countering those gains.
Other major indices were mixed, with the
TheStreet.com Internet Sector
Index off 1 to 745 and the small-cap
down 1 to 455.
Breadth was negative, and volume weak on both the NYSE and the Nasdaq.
New York Stock Exchange:
1,363 advancers, 1,333 decliners, 432 million shares. 30 new 52-week highs, 67 new lows.
Nasdaq Stock Market:
1,475 advancers, 2,171 decliners, 622 million shares. 15 new highs, 174 new lows.