With a few sectors sitting at bargain prices, today was a day when investors put aside any jitters on further declines and went into discounted stocks. This mini-rally allowed previous losses from yesterday to be wiped clean from the slate. (PCX) had a nice buy opportunity today when it dipped below $8 to $7.54 before charging back up. It was a good pull up and thank fully am above my buy price again.

Another indicator that I mentioned last night to watch was the weekly unemployment reports. Worse-than-expected weekly unemployment report added to concerns that the economic recovery might not come as quickly as hoped. The volume overall on the markets was low and this did move the markets sideways.


With some of the earnings I said worth watching, (WMT) failed to make investors happy and the stock did fall after posting their earning results. I have held this stock for a while now in my long portfolio and its been basically at the same level the whole time. Ofcourse, Wal-Mart is a recession proof stock and worth picking up on this lower price if your looking for a stable long term investment.

Here is the market re-cap for Thursday:

Looking at Friday:
Economic Indicators:
8:30AM Consumer Price Index for April.
8:30AM NY Fed Manufacturers Survey for May.
9:00AM Industrial Production for April.
10:00AM E-Commerce Retail Sales for Q1.
10:30AM Weekly Leading Index

Now on Friday (JCP) JC Penny is announcing earnings. This company did low ball their earnings expectations in the past (similar to how Apple acts) and this could cause a pop in the share prices. The only problem with JCP is its problem with inventory management which could ultimately hurt the company long term along with a lower margins on products.

Friday I will try to pull a quick trade on the financials sector. It seems like heading into the weekend that prices could pull upwards during the day as a continuation from the Thursday activity. (BBI) Blockbuster was up sharply during the day but after hours it announced poor earnings and is currently falling hard after hours. If a small rally forms during the day, (BBI) could be worth using for a quick percentage gain – nothing worth holding.

Happy Investing!

Aman, MBA

No related posts.