Market Wrap-Up for July 7 (STT, NTRS, PNC, GS, CLF, CF, more)


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The market seemed intent today on gaining back what it lost during yesterday's afternoon slippage, and boy did it!

Couple a short-term oversold environment and State Street's ( STT ) apparently positive guidance, and the averages were able to move right back up. Getting back to the State Street euphoria, two interesting bits of information are in the company's commentary that the morning cheerleading is doing a good job ignoring.

Check out this quote from the story below:
"The custody bank based in Boston reported the preliminary results early as it disclosed its second-quarter net income would include a one-time, after-tax charge of $251 million, or 50 cents per share, to help support trust funds it manages. The contribution to the funds allows State Street Global Advisors, which manages the funds, to lift redemption restrictions on the funds beginning in August. Also, State Street also said it would record a one-time tax benefit of $180 million, or 36 cents per share, during the second quarter because of restructuring non-U.S. assets."

Not exactly as positive as it seems on the surface, but again, with the markets being down 7 of the last 8 sessions, a bounce is not a shocker here. We saw financials such as Northern Trust ( NTRS ) and PNC Financial ( PNC ) climb on the State Street news. Goldman Sachs ( GS ) regained what it lost yesterday. Commodity stocks also moved up with Cliffs Natural Resources ( CLF ) and CF Industries ( CF ) trading in the green. These plays, along with the financials we just mentioned all share the low dividend yield component that I would shy away from for income-seeking investors. These stocks have become more or less trading vehicles with the dividend yield being essentially a non-factor. Volume was not as strong as one would think, with 4.93 Billion shares on the NYSE, and 2.09 Billion shares on the NASDAQ.

Again, be sure to examine your current holdings carefully here. There are plenty of companies that have terrible-looking long-term charts which are heavily-owned and who have dividend yields that are simply not attractive. As always, we will keep our subscribers updated to any further changes we will make on our "Best Dividend Stocks" list.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks
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