The Downward Gap Beckons
The opening gap up due to a bailout of Spanish banks was quickly sold, and the atmosphere grew increasingly negative as a couple of earnings warnings rolled in. Applied Materials (AMAT) warned early in the day, and that helped to pressure the technology sector, but it was a warning from Cummins (CMI) at around mid-day that really cranked up the selling. Cummins is in one of those basic industries, and if it isn't doing well, then that probably means a lot of others aren't doing well.
While the straight-down action all day was quite ugly, many individual stocks were absolute disasters. The drops in stocks such as Questcor (QCOR) and MAKO Surgical (MAKO) were news-driven, but the reversals in Apple (AAPL) and Priceline (PCLN) weren't very pretty either....166 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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