Stocks have come back from session lows as President Bush began speaking to a group of California business leaders regarding his plans to try and pass an economic stimulus package that is currently before congress.
Within the past hour, the Dow Industrials had traded a session low of 9,271, but have rallied back nearly 40 points to trade at 9,313. In the "market monitor" on OptionInvestor.com we made note that the Dow Industrials along with the S&P 500 (SPX) had traded back to their 50-pd moving averages on their 60-minute charts. This was very similar to action that took place back on October 12th when we were also hearing about some various anthrax exposures. On October 12th, both the Dow and SPX held these moving averages and we've seen the same type of action up to this point.
52-week high, but just the beginning?
Within the past hour, shares of Johnson and Johnson (NYSE:JNJ) traded the $58 level. This had done several things to our point and figure chart. Suffice it to say, the technicals are bullish and today's 52-week high might be just the beginning of better things to come for the stock.
Johnson and Johnson (JNJ) - $1 box
Right time and right stock might be the theme for Johnson and Johnson (NYSE:JNJ). Dorsey/Wright and Associates classifies the stock as "drug," but one could also classify the stock as belonging to the Foods Beverages/Soap group. Regardless, the companies products are more "defensive" in nature during times of economic uncertainty. Yesterday, JNJ reported earnings of 50 cents a share, which beat analysts estimates of 48 cents a share.