Trend Still Down Despite Rally
by Sam Collins 06/26/09
After four consecutive days of selling, the Dow Jones Industrial Average (DJI) finally put together a winning session yesterday. The Dow started off lower, but then suddenly reversed and, in series of steps, rose to the high of the day by early afternoon.
The general rally got its momentum from the retail group, which was led by Bed, Bath & Beyond (BBBY), up 9.48%. Earlier BBBY reported Q1 earnings of 34 cents a share versus analysts' estimates of 25 cents.
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But the Dow's charge was the result of gains for Alcoa (AA), American Express (AXP), Home Depot (HD), Merck (MRK) and Pfizer (PFE). Of the Dow 30, 29 stocks had gains.
In addition to strength in the retail sector, homebuilders were also a focus of buying. Lennar Corp. (LEN) rose 17.52% after the company beat earnings forecasts and said that new homes orders jumped 63% during their second quarter.
Yesterday's rally, though still lacking in volume, was broad-based with all 10 of the major sectors of the S&P 500 (SPX) able to achieve gains of more than 1%. Even the financials finally closed with a gain after lagging until the final hour of trading.
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