The Dow Jones Industrial Average continued its losing streak, falling by about 0.5% to under 12,070 in early morning action. Even though an agreement to raise the U.S. debt ceiling was reached, concerns about the economy had the Dow in negative territory, with more than 100 stocks reaching a new low in the overall market.
Manufacturing in the U.S. is now at a two-year low. The Dow Jones Industrial Average is down more than 3% during the past five days of trading but up more than 4.5% for the year.
Pfizer (NYSE:PFE) was down about 2%, or about 40 cents, to around $18.70 as its earnings disappointed Wall Street. While profits were up 5% because of charges and taxes, Pfizer is down for the week, month and quarter. Pfizer has a relative strength index of 24.42. A relative strength index rating of 30 is when a stock is considered to be oversold.
Home Depot (NYSE:HD) continued to decline to below $33.80, a loss of around 50 cents, or more than 1.3%. For this week, Home Depot is down more than 6.5%. Home Depot has a relative strength index rating of 31.53.
Also down on the weak economic news was General Electric (NYSE:GE) by more than 0.9%, a loss of about 15 cents per share to around $17.80. General Electric is trading well beneath its 20-, 50- and 200-day moving averages and is down for the week, month and quarter. It has a relative strength index rating of 36.62.
Bank of America (NYSE:BAC) continued to rally from the beating it took earlier from poorly received earnings, up around a nickel to over $9.85, an increase of about 0.5%. The worst-performing stock in the Dow for 2011, Bank of America is down 2% for the week.
IBM (NYSE:IBM) rose more than $1.25, about 0.7%, to over $182 on several favorable reports. Big Blue, recently reporting strong earnings, is up for the month, quarter and year while trading above its 20-, 50- and 200-day moving averages.
Despite the negative economic news, Caterpillar (NYSE:CAT) was a Dow leader, gaining about 0.15%, or 10 cents, to over $101 in early trading. With a beta of 1.72, The Big Cat is a very volatile stock. It is up more than 40% for the year but down for the week, month and quarter because of disappointing second-quarter earnings.
Jonathan Yates does not own any of the stocks mentioned in this article.
