Market Update: DJIA Pares Early Gains; Gold Hits Yet Another New Record

by **hlk** Tue 23 Aug 2011, 01:25

Stocks are modestly higher at midday, while gold futures extend their record-setting streak

After jumping higher right out of the gate, U.S. stocks have trimmed their gains as we head into the afternoon. The initial enthusiasm was prompted by signs of progress in Libya, where rebel forces have taken the capital city of Tripoli from Col. Muammar Gaddafi. The news provided an early boost for crude futures -- but black gold has since slipped back into the red, with the most active contract down 11 cents at $82.30 per barrel at last look. On the other hand, gold futures continue to draw a crowd, as traders look anxiously ahead to Friday's speech by Fed Chairman Ben Bernanke. Gold for December delivery touched a fresh record high of $1,898.60 per ounce earlier, with the contract making an earnest run at the looming $1,900 level.

After finding intraday support near the breakeven line, the Dow Jones Industrial Average (DJIA - 10,873.88) was last seen up 56.2 points, or 0.5%. The S&P 500 Index (SPX - 1,125.22) is clinging to a gain of 1.7 points, or 0.2%, and the Nasdaq Composite (COMP - 2,346.21) has added 4.4 points, or 0.2%.

DJIA price chartChecking in on Dow components, Hewlett-Packard (HPQ - 24.51) is up 3.9% to pace the 21 advancing blue chips, thanks to an upgrade to "buy" at Auriga. Bank of America (BAC - 6.57) is down 5.8% to set the tone for the nine laggards.

The CBOE Market Volatility Index (VIX - 43.09) is little changed, with the index gaining less than 1% so far. However, the VIX remains well north of newfound support at its rising 10-day moving average.

Among equities in focus, Suntech Power (STP - 5.22) has gained 2.4% this afternoon, after earlier tagging a post-earnings low of $5.09. Elsewhere, Delcath Systems (DCTH - 3.75) has tacked on 2.7% at last look, buoyed by positive trial results for its liver cancer treatment. Also on the upswing is Under Armour (UA - 55.54), with the stock rising more than 5% on the heels of two bullish brokerage notes. On the other hand, FedEx (FDX - 72.63) is down 0.7% to trade just fractionally north of its freshly tagged annual low of $72.16, thanks to a downwardly revised earnings forecast from J.P. Morgan.

-posted by Elizabeth Harrow (eharrow@sir-inc.com)

8/22/2011 12:42:30 PM