Wednesday, June 9, 2010
The major averages negatively reversed (opened higher and closed lower) after the Fed’s Beige Book showed the economy is growing “modestly.” Volume, an important indicator of institutional sponsorship, was lighter than Tuesday’s levels. Advancers led decliners by about a 10-to-9 ratio on the NYSE but trailed by about a 6-to-7 ratio on the Nasdaq exchange. There were only 5 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 3 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed by a large margin on the Nasdaq exchange.
Fed Beige Book Shows “Modest” Economic Growth:
Investors dumped stocks after the Federal Reserve released its Beige Book. The Fed survey said economic growth was “modest” which worried investors. The Beige Book which is published two weeks before a Fed meeting said, “Economic activity continued to improve since the last report across all 12 Federal Reserve Districts, although many Districts described the pace of growth as ‘modest.’” Elsewhere, a slew of energy and financial stocks tanked which dragged the major averages lower in the final few hours before the close.