Major averages closed yesterday roughly midbar on mixed volume. The Dow Industrials continues to flirt with the 20,000 level, but was denied again yesterday as the index gave up nearly two-thirds of its early gains by the close. The NASDAQ stalled on higher volume, marking a churning day for the index.
Futures are mildly higher on an analyst upgrade of GE but a downgrade of KO. ORCL is lower by 3% on a weak earnings report, released last night. Housing starts slowed to an annualized rate of 1.09 million vs estimates of 1.23 million, while building permits eased to a rate of 1.201 million vs. 1.24 million permits expected.
As the Dow has stalled on its attempts to clear the "magical" 20,000 price level, the situation with individual stocks is somewhat mixed, although we have seen some constructive action among our Focus List stocks, such as NVDA, Z, and ANET, for example. We would remain alert to any sudden changes in the action of current leading stocks in the event that the recent stalling and churning action in the indexes leads to a more significant pullback.
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