Market Wrap-Up for May 21 (MA, GS, JPM, FCX, BA, BP, more)

By Staff,

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The market has been able to bounce off earlier lows and climb back over the psychological Dow 10K level.

Despite the recent drop, which has been a decent-sized one, investors need to remember we are still up over 50% from the March 2009 lows. There is a decent chance the markets could down further, considering the economic landmines that still exist (and will stick around for quite a while). One of the other factors that continues to baffle us is the low volume rallies we have seen during the tremendous market run-up. Market pundits continued to brush it aside as nothing more than a "reversion to a new norm", and likely due to ETFs influencing how investors spread their investing dollars. Unfortunately, we have been seeing in the recent selloff a big spike in volume and the major effect it has had on the averages in a short amount of time. Fortunately we are not buying into the new theories and will continue to harness our own research to maintaining what we feel is a more proper investing perspective.

As we look at today's bounce, commodity stocks were certainly seeing a lift with names like Freeport McMoran ( FCX ) and BHP Billiton ( BHP ) rising. Financial plays Mastercard ( MA ) , Goldman Sachs ( GS ) and JP Morgan ( JPM ) led the financials higher. Other names seeing a bounce included Boeing ( BA ) , Public Storage ( PSA ) and Time Warner Cable ( TWC ) . Names that couldn't quite turn things around in the bounce today included BP Plc ( BP ) and Colgate-Palmolive ( CL ) . Volume on the NYSE came in at just 5.45 Billion shares on the snapback, and we traded 8.32 Billion shares on the big drop yesterday. This indicates there is still a bit of distribution going on and keeps us somewhat cautious.

As we get set for the weekend, we are looking ahead to earnings next week from companies such as Campbell Soup ( CPB ) , Costco ( COST ) , Guess, Inc. ( GES ) and Medtronic ( MDT ) . There will likely be a shakeup in our weekend watchlists,so be sure to check them out on Premium.

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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