The Good News Bad News Chart of the Market (DIA, SPY, AA, CAT, DD, UTX, DIS, HPQ, BAC, IBM)

The DJIA (NYSE: DIA) was trading down 500 points today before a late-day rally.  More European concerns and serious slowing in China’s manufacturing data only brought on more selling.  The week before was all buying, but we are now down for four days in a row.

The chart of DJIA has some very good news, predicated with the fact that it also has some very bad news associated with it (see below). The August 1 close was 12,132.49 and the crest of selling took the DJIA on August 10 to 10,662.04 as an intraday low and to 10,719.94 as a closing low.  Yesterday’s close was 11,124.84 and today’s intraday low was 10,597.14 and the closing low was 10,733.83.  So we broke a low but did not close under the prior low.

Where the news gets good is that the S&P 500 Index (NYSE: SPY) managed to hold above the low of 1,101.54 on August 9 and the low close of 1,119.46 on August 8.  Today’s low was 1,114.22 and the close was 1,129.56.  The true test has to come from the S&P 500 Index rather than 30 DJIA stocks with a price-weighted index but today’s big losers were generally the same ones that win if China and the international market growth wins.  We showed how many of the big drops today came from DJIA components hitting new 52-week lows:

Alcoa Inc. (NYSE: AA) closed down 6.7% at $10.11 at a new 52-week low as the prior range had been $10.84 to $18.47.

Caterpillar, Inc. (NYSE: CAT) closed down 6.9% at $73.90 at a new 52-week low as the 52-week trading range was $75.00 to $116.55.

E.I. du Pont de Nemours (NYSE: DD), a.k.a. DuPont, closed down 6.6% at $41.65.  That is a new 52-week low as the prior range was $43.60 to $57.00.

United Technologies Corporation (NYSE: UTX) closed down 8.7% at $68.31 and its 52-week trading range is $67.12 to $91.83.

The Walt Disney Company (NYSE: DIS) was a surprise as much as it fell with a new 52-week low at $29.55 based upon a 5.5% drop and the prior 52-week trading range was $29.60 to $44.34.

Elsewhere Hewlett-Packard Co. (NYSE: HPQ) fell 4.9% to $22.80 and Bank of America Corporation (NYSE: BAC) fell 5% to $6.06 against a prior 52-week low of $6.01.  International Business Machines Corporation (NYSE: IBM) was a big drag on the DJIA because of the index being a price-weighted index: shares fell 2.5% to $168.62 against a 52-week trading range of $131.22 to $185.63.

Hoping for a better day Friday…

JON C. OGG