Feb 28, 2012

Stock recommendations today

The blue chips erased a 100-point decline to close out the trading day little changed, but failed to hold the psychologically-important 13000 mark as traders weighed stronger-than-expected U.S. housing data with caution over high energy prices and other potential headwinds. 
The Dow Jones Industrial Average, as quoted by foxbusiness.com, fell 1.4 points, or 0.01%, to 12,982, the S&P 500 gained 1.9 points, or 0.14%, to 1368 and the Nasdaq Composite rose 2.4 points, or 0.08%, to 2,966. 
Volatility, which had spiked earlier in the session, was up by a more modest 5%, as tracked by the CBOE's volatility index. Still, in a sign of the ongoing anxiety, traders bid up safe-haven U.S. Treasury bonds, pushing yields lower. The benchmark 10-year note yields 1.929% from 1.979%.
The U.S. economic calendar on the week is fairly full, with several key reports on tap. Contracts for pending sales of previously-owned homes jumped 2% in January, the highest level since April 2010, according to the National Association of Realtors. Economists expected a smaller increase of 1%. Pending home sales are up 8% on a year-over-year basis.
"The important thing to remember about pending home sales is that they are an important leading indicator for the all important existing home sales measures," Dan Greenhaus, chief global strategist at BTIG wrote in a note to clients following the report.
Energy prices have been a key worry for traders on Wall Street, although they did ease on the day. U.S. crude oil closed out the week last week at its highest value since May, while New York Harbor wholesale gasoline ended at its highest level since April.
How about Indonesia stock market today? Bisnis Indonesia provides recommendations today:

Reliance Securities:
Jakarta Composite Index (JCI) may move within the range of 3,850-3,950. Several stocks to monitor: ASII, BDMN, INDF, and UNVR.

Panin Sekuritas:
The sell-off on the JCI may fade today. Blue chips are in an overbought area despite the absence of reversal sign. Support and resistance level today is within the range of 3,832-3,900.

e-Trading Securities:
The JCI today may move within the range of 3,830-3,896 with several stocks to watch: ASII and JSMR.

Minna Padi Investama:
The index today may rebound with resistance level of 3,915. Investor could watch banking stocks that experience oversold. Several stocks to monitor: BBRI, BBCA, and BMRI.
 
Disclosure: No position at the stock mentioned above.

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