Market Wrap-Up for May 12 (MA, V, MS, IBM, BA, more)

Filed in Debt, dividend, earnings, Gold, Gold Investing, Gold Investment by on May 12, 2010 0 Comments

We are heading into a slower earnings period so the short-term nature of how the market trades will depend on the headlines around the most recent drama in the global debt contagion waters. The market appeared to be setting up for another good run yesterday afternoon (albeit on low volume), but selling took over and pushed the indices to close mostly in the red. We saw a similar pattern today, but this time the averages were able to hold the gains into the close. We have been in a “trimming” period with our “best dividend stocks” list. When you have a market that has moved up as much as we have seen in the last 14 months from a March 2009 bottom (70% plus), without a normal “backing and filling”, the dangers of significant pullbacks can remain high. We will continue to monitor the situation and help investors maneuver as best we can. The market was able to ignore the possible Morgan Stanley ( MS ) investigation news and power higher. Some of the big winners included companies like IBM Corp ( IBM ) , Boeing ( BA ) , and United Parcel Service ( UPS ) . Mastercard ( MA ) and Visa ( V ) recovered all of yesterday’s losses to close comfortably higher. Despite the big gains we saw today, volume continues to be light on the up days and that is something that needs to be monitored. There is clearly distribution going on in the market, if the big down days are seeing heavier volume numbers. This is something we will be watching closely as we continue to pay attention to various data points. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Market Wrap-Up for May 12 (MA, V, MS, IBM, BA, more)

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