I would like to begin this newsletter by giving my heart-felt condolences to the country of Japan and the families affected by the massive earthquake and tsunami that caused many deaths and extensive property damage.
The massive earthquake was the largest ever recorded in the region since records began at 8.9 on the richter scale. This historical event caused automoblie companies such as (HMC) Honda, (NSANY) Nissan, and (TM) Toyota to close its factories.
(TM) Toyota fell -5.87%, (NSANY) Nissan -7.32% and (HMC) Honda -7.58% for the week. There was also downside pressure for the U.S. parts manufacturer (BWA) Borg Warner its stock price declined -3.97% due to its exposure to Japan. As for now the market is currently correcting itself after being down for 2 of the past 3 weeks.
Stocks on the earnings watch calendar in the week ahead are are (LULU) Lululemon Athletica, (GPOR) Gulfport Energy Corp., (ROST) Ross Stores, Inc. and (EBIX) Ebix.com, Inc.
As for the week that was in the stock market the Dow Jones Industrials, the Nasdaq as well as the S&P 500 all ended the week on the downside. There was also a price move to the downside for a barrel of oil as the index retreated from a 52 week price high in the $107.67 area to end the week trading at $101.67 down $2.98 or -2.85%.
There was also a decline in the price of gold after moving higher to the upside for 5 of the past 6 weeks.
The top price movers in the market this week were stocks such as (COOL) Majesco Entertainment Co. +62.20%, (CIGX) Star Scientific +62.09%, (ATRN) Atrinsic, Inc. +58.79%, (GMCR) Green Mountain Coffee, Inc. +40.98%, and (BLTI) BioLase Technology, Inc. +37.35%s.
The Dow Jones Industrial Average began the week trading at 12,171.09 but moved to a price low in the 11,936.32 area before ending the week trading higher. As for now the index is below it 5 week moving average but above its 10, 32, 50 and 200 week moving averages.
Downside support for the Dow Jones Industrial Average is at 11,296.14 with upside resistance in the 12,391. The top price movers in the Dow 30 this week were (WMT) Wal Mart Stores +1.84%, (T) AT&T, Inc. +1.17%, (BAC)Bank of America Corp. +0.77%, (MCD) McDonalds Corp. +0.64%, and (TRV) Travelers +0.10%.
The Dow Jones Industrial Average ended the week trading at 12,044.40 down -125.48 or -1.03% on lighter than average volume of 3.55 billion. The average weekly trading volume for the Dow is 4.04 billion.
At the tech weighed Nasdaq Composite Index there was a continuation of pressure taking the indices lower for the second time in the past 3 trading weeks. The Nasdaq began the week trading in the 2,794.82 area before moving to a low in the 2,689.41 area before ending the week trading slightly higher to the upside.
The Nasdaq is currently below its 5 and 10 week moving averages but above its 32, 50 and 200 week moving averages. Downside support for the index is in the 2,533.31 area with upside resistance at 2,840.62.
The top stocks in the Nasdaq 100 this week were (EXPD) Expedia, Inc. +5.26%, followed by (AMGN) Amgen, Inc. +2.31%, (HOLX) Hologic, Inc. +2.18%, (BIDU) Baidu, Inc. +2.14%, and (ADP) Automatic Data Processing, Inc. +0.88%.
The Nasdaq Coposite Index ended the week trading at 2,715.61 down -69.06 or -2.48% on heavier than average downside volume of 10.24 billion. The average weekly trading volume for the Nasdaq is 9.95 billion.
As for the Standard and Poors 500 there was also as decline in the indices for the second time in the past 3 weeks as the index ended thw eek on the downside. The S&P is currently below its 5 week moving average but above its 10, 32, 50 and 200 week moving averages.
Downside support is in the 1,211.56 area with upside support in trhe 1,344.18 area. The top movers in the S&P 500 this week were (S) Sprint Nextel Corp. +15.21%, (WDC) Western Digital Corp. +14.63%, (IRM) Iron Mountain, Inc. +12.65%, (HRB) H&R Block, Inc. +10.47%, and (JCP) JC Penny Co. +10.41%.
The S&P 500 ended the week trading at 1,304.28 down -16.87 or -1.28% on lighter than average downside volume of 16.48 billion. The average weekly trading volume for the S&P 500 is 18.03 billion.
By: Marlin Rolle
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