Wednesday, June 16, 2010
The major averages traded between positive and negative territory after BP Plc’s (BP) said it plans to create a $20 billion fund to pay damages from the oil spill and investors digested the latest round of lukewarm economic data. Volume totals were reported lower on the Nasdaq and on the NYSE which signaled large institutions were not aggressively selling stocks. Breadth was negative as decliners led advancers by an 11-to-8 ratio on the NYSE and nearly a 4-to-3 ratio on the Nasdaq exchange. There were 35 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 37 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange.
Investors Digest A Slew Of Economic Data:
Before Wednesday’s opening bell, the Commerce Department said housing starts slid -10%, the largest decline since March 2009, to a 593,000 annual rate. This was was lower from a revised 659,000 pace in April and trailed analyst estimates. Meanwhile, building permits, a sign of future construction, unexpectedly fell to a one-year low and single-family starts suffered the largest decline since 1991. The weaker than expected housing data coupled with the sharp two month sell-off in many housing stocks rises the likelihood of a double dip decline in the ailing housing market.
Separately, Fannie Mae (FNM) and Freddie Mac (FRE) plunged after their regulator told the two mortgage-finance companies to delist their stock from the New York Stock Exchange. Finally, the produce price index (PPI) was released on Wednesday and did little to excite investors.