I have to admit I yawned all day as I watched the market. By the end of the day, the "big boys" were able to push the market averages up 89 points to suck a few more people in before they take profits.
As I scanned the DJIA, I was looking for the stocks that provided the fireworks (in between yawns), and low and behold, there were none. Here is a scan of the DJIA:
COMPONENTS FOR THE DJIA
AA ALCOA INC 31.11 -.24 (0.77%)
AIG AMER INTL GROUP INC 66.27 +.81 (1.24%)
AXP AMER EXPRESS INC 52.62 +.17 (0.32%)
BA BOEING CO 71.62 +3.31 (4.85%)
C CITIGROUP INC 46.33 -.25 (0.54%)
CAT CATERPILLAR INC 69.24 +1.34 (1.97%)
DD DU PONT E I DE NEM 39.49 +.34 (0.87%)
DIS WALT DISNEY-DISNEY C 25.27 -.04 (0.16%)
GE GEN ELECTRIC CO 33.14 -.39 (1.19%)
GM GEN MOTORS 24.50 +.44 (1.83%)
HD HOME DEPOT INC 40.23 -.32 (0.79%)
HON HONEYWELL INTL INC 39.34 +.92 (2.39%)
HPQ HEWLETT PACKARD CO 31.23 +.05 (0.16%)
IBM INTL BUSINESS MACH 81.94 +.64 (0.79%)
INTC INTEL CP 21.55 +.30 (1.39%)
JNJ JOHNSON AND JOHNS DC 57.86 +.32 (0.56%)
JPM JP MORGAN CHASE CO 39.88 +.13 (0.33%)
KO COCA COLA CO THE 41.50 +.12 (0.29%)
MCD MCDONALDS CP 35.67 +.66 (1.89%)
MMM 3M COMPANY 73.19 +.44 (0.60%)
MO ALTRIA GROUP INC 73.50 +1.16 (1.60%)
MRK MERCK CO INC 34.66 +.16 (0.46%)
MSFT MICROSOFT CP 28.04 -.11 (0.39%)
PFE PFIZER INC 26.05 +.37 (1.44%)
PG PROCTER GAMBLE CO 59.82 +.59 (1.00%)
T AT&T INC. 26.55 +.60 (2.31%)
UTX UNITED TECH 58.00 -0.37 (0.63%)
VZ VERIZON COMMUN 31.80 +0.14 (0.44%)
WMT WAL MART STORES 46.14 +.03 (0.07%)
XOM EXXON MOBIL CP 61.95 Down 0.80 (1.27%)
The leader of the pack was obviously Boeing (BA + $3.31). Amazingly enough, the commercial airplane business is growing despite sky high energy prices. In truth, Boeing is also making a fortune from the defense business as 2005 was another record year.
The old adage rings true. When Republicans run the government, buy oil and defense stocks. When Democrats run the government, buy technology stocks, and watch your wallet. Actually we've come to a point where we need to watch our wallets when either party is in control.
Shares of Google finished down 31.34 at 401.78 after trading below $400 for much of the day. The day could have been a lot worse, but it looks as if the stock may settle down in a new trading range in a day or two.
General Motors reported better-than-expected January sales, and shares rose 44 cents to 24.50. The speculators who bought this stock in December per our journal note are pretty happy right now. i love being a contrarian.
Speaking of contrarian plays, have you noticed the basing action in Pfizer and Merck lately. They, like GM do not have a friend in the world. I am considering buying both stocks and tucking them away for the long term.
Energy stocks fell as oil prices dropped below $67 per barrel. I would like to see a 5-10% correction in some of the major oils over the next month or two. You know as well as I do, when we head into the summer months we will once again have to contend with hurricanes and the summer driving season. Gasoline prices fell by over 4% after a report U.S. oil and gasoline inventories gained more than expected last week.
For you hedgers out there, this rally has provided you with a good opportunity to buy the Rydex Tempest 500 fund (RYTPX). If we get a 5 % pullback over the next month or so, you can pick up a quick 10%.
