For the third day in a row, the Dow Jones Industrial Average opened higher, about 0.2%, gaining more than 23 to take it above 12,200. Good news for financials, the poorest performing sector this year, lifted the Dow from the opening bell.
Bank of America (NYSE: BAC) was strong out of the gate, rising well over 3% after announcing a $8.5 billion settlement for its Countrywide mortgage pullback claims that had the stock up more than 33 cents to around $11.20. Bank of America also used this opportunity to pre-announce losses for the second quarter. Bank of America still is down almost 17% from its high for 2011.
Following the lead of Bank of America, J.P. Morgan (NYSE: JPM) also surged after the opening bell with a more than 2% gain, up more than 80 cents and trading well over $40.30. J.P. Morgan still is down almost 4.7% for the year and trading beneath its 20-, 50- and 200-day moving averages.
Up about 0.75% was Coca-Cola (NYSE: KO), more than 50 cents, to over $66.50. Consumer stocks were doing better as a result of slightly better data.
Techs led the Dow lower after the strong opening, with Microsoft (NASDAQ: MSFT) lower by more than 1.40%, a loss of about 37 cents. Trading around $25.40, Microsoft is up more than 4% for the week and trading above its 20- and 50-day moving averages. At a relative strength index of just over 60, Microsoft is approaching the 70 plateau for when a stock is considered to have been overbought.
Intel Corporation (NASDAQ: INTC) was down about 0.6%, about 13 cents, hovering in the $21.40 range. Intel is beneath its 20- and 50-day moving averages, but almost 3% above its 200-day moving average. Intel is more than 24% above its low for the year.
Also taking the Dow down hard early was Caterpillar (NYSE: CAT), falling more than 1.17%, over $1.10, to trade around $102.70. Caterpillar is more than 80% above its low for the past year. It also is trading above its 20- and 200-day moving averages. Caterpillar has a beta of 1.7, high for a blue-chipper.
Jonathan Yates does not own any of the stocks mentioned in this article.
