Its not all good

[Italkcash Newsfeed]

U.S. stocks on Tuesday reconsidered the wisdom of further gains, turning lower as renewed worries about the economy dented consumer-discretionary and technology shares, offsetting gains among financials on the government's plan to invest billions in big banks.

"With a recession still in the offing, tech earnings remain a concern and in other sectors that don't have the benefit of heavy government backing," said analysts at Action Economics.

The Dow Jones Industrial Average surged as much as 400 points early on but then backed off, with the blue-chip benchmark recently down 53.12 points at 9,334.49. Twenty of its 30 components traded lower.
As was the case with the broader market, consumer-discretionary and technology shares weighed on the Dow, with Coca-Cola Co. and Microsoft Corp. both down about 5%.

Fellow Dow component Intel Corp. fell 5.6% ahead of its third-quarter earnings report, slated for release after the close.

The Dow's financial shares paced blue-chip gains, with Bank of America Corp. up 13.6% and Citigroup Inc. ahead 15.4%.

Off the Dow, other financial shares also gained, with KeyCorp rallying 29.5% and National City Corp. gaining 40.4%.

Volume on the New York Stock Exchange topped 671 million, and for every two stocks on the decline nearly three were on the rise. On the Nasdaq, nearly 471 million shares changed hands, as decliners outpaced advancers 7 to 6.

Ahead of the open on Wall Street, investors reacted favorably as Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke discussed the government's bank rescue plan, offering reassurances that it would work.

"These are healthy institutions, and they have taken this step for the good of the U.S. economy," Paulson said in prepared remarks, referring to the plan to make direct investments in major banks.

The Doc


Sourch: Marketwatch