Daily Market Recap

The S&P 500 was higher by 0.27%, the Dow by 0.28%, and the NASDAQ was off 0.22%. Technology stocks came under pressure from the open after Oracle released disappointing earnings after the close yesterday. Other large tech stocks traded lower in sympathy with Oracle. The weakness in technology led to the weakness in the NASDAQ.

An article from the Wall Street Journal released mid-day had a positive impact on the markets. The point of the article was that the market severely overreacted to the statements made by Fed Chairman Bernanke over the past few days. The market in the short run has overlooked several dovish comments made by the Fed Chairman. The Fed remains data dependent on when QE will ease or stop. If there is a reduction in QE activities by the Fed it will come in response to improved economic conditions and a substantial increase in employment. There were also positive comments from the International Monetary Fund. The comments focused on reasons why the Fed would taper accommodative actions. There would only be a reduction in central bank support if economic conditions improve. Also, central banks will remain supportive should any changes warrant aggressive action.

Media stocks outperformed the market today. Pure play content names were standouts. There have been several blockbuster deals announced recently in the industry. There is speculation that media companies are negotiating several significant deals that would be favorable for the stocks.

Healthcare outperformed the market led by managed care and medical technology stocks. HMO’s hold a significant amount of cash and will be helped by higher rates. Also, the relative safety and consistency of the group was in favor today.

Source: PFS Group

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