Wednesday, July 02, 2008

Early Look: Financials Bounce. Coal Stocks Tank

The market is up slightly in early trading, but nothing to write home about. Coal stocks are gettign whacked, which isn't suprising given their parabolic run lately. Steel stocks are under pressure as well.

This looks like profit taking of some of the year's biggest winners. The question is if there will be some rotation out of commodity stocks and into more traditional growth stocks. The rise in the biotech index yesterday would support this notion.

Retail stocks are trading better today. Walgreens (WAG) reported that June sales rose +10% yr/yr; Starbucks (SBUX) said it plans to increase store closures to improve its cost structure.

Asian markets were down across the board overnight. The dollar is weak this morning. And oil is up a bit again, trading near $142. The 10-year yield is down slightly to 3.97%, after a big turnaround yesterday.


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