Home Run: Dow Rises on Strong Volume
With so much attention placed on the Astro win yesterday, investors may have overlooked the Dow's explosive close/rally late Wednesday.Good week for baseball -- but a rough one for stocks.
Until yesterday, that is.
Volume surged in the last 1/2 hour of trading as investors piled back into stocks after traders were greeted with sanguine remarks from the Fed.
It wasn't a day at the beach for everyone, though.
eBay got hammered after reporting numbers Wednesday; a la Intel (INTC), investors were let down by forecasts for the next quarter.
We got sick and tired of eBay after they bought voIP leader Skype for $3 billion.
We still think the voIP market is susceptible to low entry barriers; in addition, Vonage's forthcoming IPO should put pressure on eBay/skype in 2006.
Financials rocked on Wednesday, thanks to JP Morgan (JPM).
As we reported earlier, Atlanta-based regional bank SunTrust (STI) also had a blockbuster showing.
The recent shift of attention to financials tells us that the market is on the cusp of a major sector rotation.
Oil stocks, which were the place to be in 2005, have been selling off.
A correction in that sector was expected after oil's yearlong joyride.
Where are investors turning to now, you ask?
Medical stocks -- health care providers, biotechs, and medical device suppliers are all experiencing strong cash inflows.
Today, all eyes are on Pfizer (PFE), who reports earnings.
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