Following the best day in the market for 2011, the Dow Jones Industrial Average was down by about 0.1% to under 12,575 in early trading Wednesday, led lower by United Technologies (NYSE:UTX) and Microsoft (NASDAQ:MSFT)
United Technologies was down in early trading with a loss of more than 2.52% to around $86.50, a drop of more than $2.25. While revenues rose at all of the business units for United Technologies, traders still were disappointed with the results.
Microsoft also was down more than 1.05% in morning action to under $27.25, shedding about 30 cents. Microsoft is trading above its 20-, 50- and 200-day moving averages and has a relative strength index of 66, with 70 being the standard for when a stock is considered being overbought.
IBM (NYSE:IBM), after its earning report produced a strong day Tuesday, was lower Wednesday by about $1.20 to around $180 as traders booked profits. Big Blue has a relative strength index of 74.74 and is trading 17.39% above its 200-day moving average.
Boeing (NYSE:BA) was up more than 2.6% to over $72.75, a pick-up of more than $2.20, as American Airlines announced the largest plane order in history – 230 from Boeing and 230 for Airbus – as part of a $40 billion fleet renewal program.
After reporting earnings yesterday that took the stock to a year low, Bank of America (NYSE:BAC) rebounded to around $9.75, up about 2% for a gain of more than 17 cents. BAC remains the worst performing stock on the Dow this year, down more than 25% for 2011. Bank of America will need a $50 billion cash cushion, according to reports, to cover all of the mortgage expenses from the acquisition of Countrywide Credit and meet Basel III capital requirements.
Reporting stronger-than-expected results earlier in earnings season, JP Morgan (NYSE:JPM) continued to rise, up more than 1.85% to over $41.10, higher by more than 70 cents in the early session. JP Morgan is trading more than 2.5% higher for the week based on its earnings strength, good news from its China operations and increased hiring in Florida.
Johnathan Yates did not own any of the aforementioned stocks as of this writing.
