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Market Wrap-Up for July 22 (QCOM, VFC, UPS, UNP, HSY, BBT, X, more)
The market quickly forgot what Federal Reserve Chairman Ben Bernanke warned about yesterday afternoon, as we gained over 200 points on the Dow. Volume still came in under 5 Billion shares on the NYSE and that continues to be an issue I am struggling with when it comes to getting overly-excited about the strength of the buying.
If you remember, the market turned tail yesterday dropping quickly after negative comments from Federal Reserve Chairman Ben Bernanke about the current economic recovery. What I gathered from yesterday's speech is the Fed is very concerned about deflationary forces that may be soon upon us. The timing could not have been worse for traders that thought the market was set for a big drop today, only to see this morning's plethora of earnings come in quite strong, pushing us to a large pop at the open.
We added three names to our recommended list earlier today, so be sure to check out the link below if you did not read the e-mail alert we sent out today. Despite my cautiousness on the market, I am still looking for opportunities so investors can put money to work in areas that may still be of good risk/reward for one's capital.
Looking at today's tape, companies like Qualcomm ( QCOM ) , VF Corp ( VFC ) , United Parcel Service ( UPS ) , and Union Pacific ( UNP ) were all pacing the gains and being rewarded for their earnings results. On the flip side, shares of Hershey ( HSY ) and BB&T ( BBT ) fell following their reports. Also, high-beta names like Mastercard ( MA ) , Franklin Resources ( BEN ) , U.S. Steel ( X ) and Capital One Financial ( COF ) put in some strong gains. These particular plays are better suited for aggressive investors that are more interested in short-term action and not for long-term investors.