We added Conoco (COP) and Exxon (XOM) to the Investor Alert portfolio today when both stocks broke below our buy limits.
We bought COP @ $58.75, and XOM at $59.73. I like to buy a sector that's under pressure the day after a big sell-off. Selling pressure normally peaks around mid-morning.
Today's reversal came after the Energy Department reported that crude oil inventories unexpectedly declined. The silver lining for consumers however was a report that gasoline stockpiles rose.
For the day, the Dow finished up 108 to 10,858, after Cisco chief CEO, John Chambers gave an optimistic forecast for the third quarter. While this is good news, a dark cloud continues to weigh on the company as investors wait for Cisco to begin expensing their employee stock options.
Last night, ex-Federal Reserve Chairman Alan Greenspan made comments to a small group of investors saying he believed the economy could withstand more interest rate hikes.
The yield on the 10-year note was down 3/16 to yield 4.59%. The 30-year bond was down 11/32 to yield 4.68%, and the two-year note closed with a yield of 4.63%. Pretty strange, isn't it?
DJIA: 10858.62, up 108.86
S&P 500: 1267.00, up 10.87
Nasdaq Composite: 2267.00, up 22.00
