The Dow Jones Industrial Average opened sharply lower, then recovered to rise more than 30 points to over 11,180, about 0.27% higher. Traders were losing hope for economic help after Federal Reserve Chairman Ben Bernanke’s speech in Jackson Hole, Wyo. Insurance stocks were off as the East Coast braced for Hurricane Irene. Financials were giving back yesterday’s gains made from Thursday’s announcement of Warren Buffett and Berkshire Hathaway’s (NYSE:BRK.A) investment of $5 billion in Bank of America (NYSE:BAC). For the year, the Dow is down more than 5.2%. Over the past five trading days, it is up more than 1.4%.
After leading the market yesterday as a gainer, Bank of America was off more than 1.5% to under $7.50 per share, losing more than 12 cents. Bank of America is the worst-performing stock on the Dow for 2011. It is up more than 9% for the week on Buffett’s investment.
Chevron (NYSE:CVX) was down about $2 and 2% to around $94. The falling price of oil has Big Oil and the energy sector falling. For the month, Chevron is down about 8%.
Big Pharma also was being battered this morning, with Johnson & Johnson (NYSE:JNJ) lower by about 2.25% to under $63 a share, a loss of more $1.50. Johnson & Johnson is up more than 2% for the week and 6% for the year.
Intel (NASDAQ:INTC) was up more than 1.3% to almost $19.70, gaining around 1.35% as the tech sector rallied in the morning session. Intel is up almost 11% for the year and is picking up support as an income stock, with a dividend yield over 4.3%.
Microsoft (NASDAQ:MSFT) was higher by about 16 cents, or 6.5%, to around $24.75 in early morning buying and selling. Merger activity in the tech sector is reaching record levels, with over $323.3 billion in deals already for 2011. Microsoft is up almost 6% for the year.
Joining the other techs in moving up on the Dow this morning was Cisco (NASDAQ:CSCO), jumping more than 1.25% to over $15.25, a gain of about 20 cents. Cisco recently was upgraded by Wunderlich, and its announced cost-cutting measures have pleased Wall Street.
Jonathan Yates does not own any of the stocks mentioned in this article.
