Tuesday, August 10, 2010
Stock Market Commentary:
Stocks ended lower as investors digested weak economic data from China and the US and the Federal Reserve decided to hold rates steady at 0-.25%. Volume totals were reported higher on the NYSE and on the Nasdaq exchanges versus the prior session, which marked the latest distribution day for the major averages. Decliners led advancers by over a 2-to-1 ratio on the NYSE and by over a 3-to-1 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE but trailed new lows on the Nasdaq exchange. There were 24 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 44 issues that appeared on the prior session.
Lackluster Economic Data Hurts Stocks:
Overnight, stocks fell after Chinese imports disappointed analysts lofty estimates. In the US, stocks opened lower after US productivity fell for the first time in 18 months and a decline in small business leaders’ optimism led many to question the health of the ongoing global recovery. Stocks ended near their intraday highs after the Federal Reserve concluded their latest meeting on interest rates. The Fed held rates steady near record lows but the big news was that they said they will reinvest principle payments on their mortgage holdings into long-term Treasury securities which is their first attempt to spark economic growth in over a year. This sent the dollar lower and a slew of dollar denominated assets (mainly stocks and commodities higher).