No follow through on Friday's rally yet. In fact, the Dow is currently down 35, and the Nasdaq is off 19.
The Dow is being held up on the strength of some cyclical stocks like 3M, Caterpillar, and International Paper. Home Depot and Intel are battling out for the worst Dow stock.
Only 13 of the Nasdaq-100 stocks are in positive territory, and none up over $1. eBay, Qualcomm, and Broadcom are the biggest dogs.
Blockbuster Daily Chart
Blockbuster (BBI) has been a blockbuster stock this year, gaining over 160%, but is one of today's biggest point losers. Just as the stock was about to hit a new 52-week high, it was blindsided by a bearish Barron's article. Barron's cited comments by Jordan Rohan of Soundview Technology Group that movie studios are looking to boost profits by selling videos over the web and video on demand. The video on demand market is likely to grow from $30 million to $1 billion by 2003, cutting into Blockbuster's profits along the way. But that's in the future. Right now Blockbuster stock should be able to find support around $19.30. Worst-case scenario for the short term would be a drop to $16.50.
Movie Gallery Daily Chart
Movie Gallery (MOVI), which owns and operates 1,035 video stores across the country, is getting hit with a 9.07% late fee today. Considering the stock has moved from $3 to $35 this year, a $2.74 drop isn't the end of the world, but could this stocks nice run be coming to an end? The initial sign of weakness would be a drop below $27.30. Losing the 50-day moving average or 38.2% retracement at $23.10 would confirm that.