For the third day in a row, the Dow Jones Industrial Average opened lower by more than 0.90%, off about 120 points to under 12,384 thanks to a soft tech sector and decliners like Cisco Systems (NASDAQ:CSCO).
Of course, Cisco and tech aren’t the only problems. Down every day this week so far, the debt stalemate continued to subdue investor appetites for equities as volume has been light even with a strong earnings season to date. Despite concern of a US default, the yield on 30-year Treasuries fell 4 basis points to 4.284%. The US dollar also fell to a record low against the Swiss Franc and a 4-month low against the Japanese Yen, traditional havens in times of market unrest.
3M (NYSE:MMM) continued to plunge, down more almost 2% in early trading due to weaker earnings. For the week, 3M is down more than 4.5%. It is now trading beneath its 20, 50 and 200 day moving averages. Of the 6 analyst recommendations for 3M in 2011, all have been positive. The relative strength index rating for 3M is 29.62 with 30 considered the mark for a stock being oversold. The short float for 3M is 0.92%.
Losing more than 2.33% in early morning action was Cisco Systems (NASDAQ:CSCO), dropping about 40 cents to less than $15.90. Juniper Networks (NASDAQ:JNPR) reported weaker earnings after the closing bell on Tuesday and the tech sector is being hammered. Overall, this has been a strong earnings seasons for techs. Cisco Systems is up more than 4% for the week and more than 9% for the month. Earlier in the month, CSCO reported layoffs and budget cutbacks to become more lean and more efficient that were received very positively by Wall Street.
JPM Morgan (NYSE:JPM) was downgraded, taking the stock lower by more than 50 cents, about a 1.30% loss to under $40.90 in am buying and selling. Up more than 5.5% for the month, earlier JP Morgan reported strong earnings. The financial sector has been the poorest performing segment of the Dow this year with JP Morgan down more than 7% for the quarter.
Boeing (NYSE:BA) took off at the opening, ascending more than $2, about 3%, to over $72.30. Boeing boosted its forecast, with its earnings rising and profits jumping 20%. For the week, Boeing is down due to investor concerns about its U.S. market share dominance. Boeing has a relative strength index rating of 47.72.
Ringing in higher was AT&T (NYSE:T), gaining more than 10 cents to $30 a share, about a 0.30% jump. AT&T is up more than 20% for the year and has a relative strength index rating of 38.86.
The golden arches continued to rise above Wall Street with McDonalds up 0.06%, about 5 cents, to over $88. McDonald’s (NYSE:MCD) just announced additions to the popular “Happy Meal” that will make it healthier for children. This earnings season has been just what shareholders have ordered from McDonalds: 5 positive analyst recommendations and strong results. McDonald’s is up for the week, month, quarter and year. It is trading above its 20, 50 and 200 day moving averages with a relative strength index rating of 72.41. A rating of 70 is when a stock is considered overbought.
Jonathan Yates does not own any of the stocks mentioned in this article.
