Continuing doubts about the global economic recovery, with Italy’s debt becoming a new concern, and a gloomy outlook for techs had the Standard & Poor’s 500 Index struggling in the 1,320 range early, gaining less than 0.1%.
Sears (NASDAQ: SHLD) was strong out of the gate, rising more than 6% to take it over $77, a gain of more than $4.40. Strong retail numbers combined with favorable analyst reports have sent retail stocks up in the past week. Sears is trading above its 20-, 50- and 200-day moving averages. With a relative strength index of 61, Sears is close to the 70 point for when a stock is considered to be overbought.
International Game Technology (NYSE: IGT) was up about 3.6%, a gain of more than 60 cents per share, to take the stock over $18 in the morning session based on a favorable report. International Game Technology is trading above its 20-, 50- and 200-day moving averages, and its relative strength index is almost at 60.
Also up over 3.5% was Host Hotels and Resorts (NYSE: HST), registering a gain of more than 55 cents per share to over $17.50. The relative strength index for Host Hotel is above 61, and the stock is trading above its 20-, 50- and 200-day moving averages.
Techs were taking the S&P lower in the morning session because of a negative report on the industry, with Microchip Technology (NASDAQ: MCHP), Novellus Systems (NASDAQ: NVLS) and Teradyne (NYSE: TER) all losing heavily.
Microchip Technology, down more than 14%, was downgraded by UBS Securities, causing the stock to lose more than $5.25 per share to trade below $32.30. Microchip is trading under its 20-, 50- and 200-day moving averages. The relative strength index for Microchip is 23, with 30 being the floor for a stock to be considered as oversold.
Novellus lost more than 10% in the morning session, more than $3.80 a share to under $32. Novellus just received a “buy” recommendation from Needham but is suffering along with the rest of the techs. Trading under its 20-, 50- and 200-day moving averages, Novellus has a relative strength index of under 40.
Down more than 5% to under $13.70 per share, a loss about 75 cents, Teradyne also is trading beneath its 20-, 50- and 200-day moving averages. It is trading more than 28% below its high for the year, and more than 5% lower for the past week.
