rode a roller coaster on Monday. After the two-day sell-off last
week, skittishness by investors was to be expected. Many reports
earlier in the day focused on a key technical level: S&P 500
1775. Mid-morning we breached that level with the major index
going below 1773.
That breach triggered a rally as investors used the discounts
to buy shares. By the end of the day, selling returned. All three
major indexes closed the day in the red. The
Dow Industrial Index
finished at 15,838, down 41 points. The S&P was down 8
points. The technology-heavy
was the big loser shedding 1% to 4084.
Caterpillar jumps after strong report
Ironically, the big winner today was
. The giant international company - heavily dependent on
the very emerging market currently giving investors fits -
released earnings before the bell. Caterpillar posted a profit
that exceeded expectations by 26 cents per share. Revenues were
also better than expected. The company raised guidance and
authorized a $10 billion stock buy-back.
The company expects sales to stabilize thanks to a growing
global economy. Shares gained more than 5% on the news.
David Faber is out recommending investors short a basket of
stocks including the much publicized and heavily traded
. Good idea or not, the stock is selling off today, perhaps in
reporting results later this week.
Shares are well off their highs, but still above their initial
offering price. Current selling pressure can be attributed to
worries about valuations in social networking stocks.
Sprint and Vodafone big movers in mobile
gained 6% thanks to the rollout of 4G LTE. The addition of
40 new markets brings the total 4G LTE rollout to 340 cities
announced it would not be acquiring
Vodafone Group (VOD)
. That disappointment sent shares of Vodafone down 3%. Shares of
AT&T were up fractionally on the day.
Geron shares collapse on study update
Not all is rosy in the biotech space. Shares of
lost 15% on Monday on seemingly innocuous news. Enrollment
in a Mayo Clinic study has been stopped at 79 patients with 20 of
those patients discontinuing treatment since the studies
That was enough to spook investors, who sold the stock on
The Stock Market Today: On Deck
Stocks were looking to open strongly higher before a weak
durable goods report put investors in a foul mood. Futures had
been higher throughout the morning, but are now flat.
The big headline for the day is
. The technology bellwether reported results after the market
closed. Weak iPhone sales had the stock down more than 7% in
Other stocks to keep an eye on today include
. All three released earnings that were positive lifting shares
Will it hold in a negative environment for the
stock market today
? We shall see.
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