The market started off pretty well, but by late morning all the gains were gone and we continued to drift lower until the close. The DOW finished off 108 points at 12,160. There were two big new items that drove the action and oddly enough both were centered around one of my holdings, Goldman Sachs (GS). Before the bell, GS announced second quarter earnings of $4.58 vs the consensus estimate of $3.42. It was another huge quarter for GS which seems to always blow away estimates. The GS earnings announcement provided strength for the market early in the day. However, it was a report by GS released later in the day that drove the market down. The report stated that because of continued losses, banks may have to write down an additional $65 billion. This took the market down and GS's stock price with it. After the bell there was one more news item of note as Yellow-Roadway (YRC) "raised" their earnings forecast for the current quarter. The stock was pushed 9% higher in after-hours trading. However, I have to challenge that somewhat because the raised guidance is not coming from stronger business, but rather because the company has recently consolidated several benefits plans. It will be interesting to see how the stock and the rest of the transportation sector trades tomorrow. I can see why people got excited about the headline on this story, but when investors dig into it a little, I think they'll find a reason to be disappointed.
News specific to my portfolio:
There wasn't much news on specific stocks in the portfolio other than GS. Overall, my portfolio advanced today despite the lower overall market. CHK was the biggest winner as it was up almost 5% to close at $64. This stock just continues to move higher as Natural Gas is enjoying a great rally without much publicity. I sold some of my position at $59 a few weeks ago and I wish I had held onto it a little longer. However, I probably need to think about selling a little more if the stock moves toward $70. BNI & USB were the biggest losers in the portfolio today. I'm not sure what caused BNI to drop almost 3% to $102.21, but it's starting to reach a level where I want to add more. If it moves closer to $100, I will have to pull the trigger because the stock looks great on a fundamental and technical basis. USB was hurt by the GS report, but I don't mind too much as I want to add to my position at $30. The stock closed at $30.67 and if we get a downward open tomorrow morning, my limit order may get filled. Lastly, I added a position in AAPL today at $180. The stock pulled back hard last week to the mid 160's and I wish I had bought some of it a few days earlier. I still think I got a good price, it just could have been a little better.
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