Investor's Business Daily,
Concerns about retail sales and mortgage lenders continued to weigh on the major market indexes as stocks sold off even harder in late afternoon trade.
At 3:00 p.m. ET the Nasdaq and S&P 500 each dived nearly 1.9%. The small-cap S&P 600 was down 1.8%. Nasdaq volume surged 39%, NYSE volume 42%.
Investment banks remained under pressure. Penson Worldwide PNSN lost 1.16 to 26.90, falling below its 50-day moving average after three sessions above it. The stock is 19% off its Feb. 21 high.
Lehman Bros. LEH headed back to its 200-day line after tanking 3.81 to 72.74.
On the upside, Pre-Paid Legal Services PPD added 2.28, or 5%, to a new 52-week high of 48.93 on twice normal volume. It had gained 4% Monday. The legal services provider has risen for six straight sessions.
Dawson Geophysical DWSN, up as much as 7% in earlier trade, pulled back from a record high for a 0.83 (2%) climb to 46.12. The provider of onshore seismic data acquisition services stepped up sales and profit growth the past two quarters.
1 p.m. ET Update: Stocks Extend Their Losses
Tag: Stocks extended their losses in early afternoon trade as mortgage lenders' woes continued. The Nasdaq fell more than 1% as volume grew.
Stocks extended their losses in early afternoon trade as mortgage lenders' woes continued.
Around noon, the Mortgage Bankers Association said late mortgage payments and new foreclosures rose in Q4 2006.
At 1:10 p.m. ET the Nasdaq fell 1.2% and the S&P 500 1%. Volume ran about 22% higher on the NYSE and 27% on the NASDAQ. Higher downside volume indicates the big money is dumping shares, a bearish sign. If the selling keeps up, it would be a blow to the market's attempted rally.
Investment bankers joined the groups with the session's biggest losses thus far. Despite strong quarterly results, Goldman Sachs GS reversed to give up all its gains, sliding 0.04 to 202.56 on heavy trade. Among others, Bear Stearns BSC fell 7.11 to 146.04, Morgan Stanley MS 2.47 to 73.59 and Credit Suisse Group CS 1.37 to 70.21.
Trina Solar TSL also reversed from an earlier gain as the Chinese solar cell maker lost 1.69 to 46.29. First Solar FSLR pulled back further, dropping 3.17 to 54.74.
But a few leaders bucked the selling. Rochester Medical ROCM added 0.92 to 18.40, nearing a new closing high.
Silicon Motion Technology SIMO rose 0.93 to a record high of 23.79. The Taiwanese chipmaker, which grew profit at least 42% the past three quarters, is expected to post 60% earnings growth for the first quarter.
11 a.m. ET Update: Stocks Fall In Morning Trade
Stocks were lower early Tuesday on disappointing retail sales and continued worries over the subprime lending market.
At 10:45 a.m. ET the Nasdaq and S&P 500 fell 0.4% each. The small-cap S&P 600 dropped 0.6%. Volume was tracking about 14% higher on both exchanges.
Retail sales ticked up by a less-than-expected 0.1% in February. Excluding autos, sales eased 0.1%. Forecasts called for a 0.3% rise in both figures.
Mortgage, home builders, and REIT groups were again under pressure.
Vail Resorts MTN lost 1.88 to 56.45. Late Monday, the ski resort operator reported a 20% gain in fiscal second-quarter profit, beating views. However, the stock fell as Banc of America Securities cut the stock to neutral from buy.
First Solar FSLR was off earlier lows but still gave up 0.90 to 57.01, pulling back after a five-session advance.
On the upside, Goldman Sachs GS neared its 50-day moving average, rising 5.10 to 207.72 after it delivered strong quarterly results. Before the open, the investment banker said fiscal first-quarter profit rose 23% to $6.67 a share, beating views of $4.97. Sales jumped 29% to $22.3 billion. Group mates Bear Stearns BSC and Lehman Brothers LEH will report later in the week.
Dick's Sporting Goods DKS gapped up and rallied 1.72 to 55.61 after it topped views and gave a bright outlook. Before the open, the operator of its namesake and Galyan's stores turned in fourth-quarter profit of $1.20 a share, up 28% from a year ago and 6 cents above estimates. Sales jumped 21%, to $1.03 billion, its first quarter of billion-dollar sales. The firm projected Q1 earnings of 35 to 38 cents a share, ahead of consensus estimates of 28 cents.
Atheros Communications ATHR climbed 0.65 to 25.93 after Jefferies & Co. upgraded the chipmaker to buy from hold. Texas Instruments TXN, the world's biggest maker of cell-phone chips, narrowed its first-quarter earnings and sales forecast.
Copyright 2007 Investor's Business Daily, Inc.
