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2 hr 32 min ago

[BRIEFING.COM] Per usual, Thursday was no exception to the on-again, off-again trading pattern that has driven the stock market for some time now. After stocks posted their second biggest gain of the year yesterday, they reversed course in a noticeable manner following a mixed bag of earnings results from the technology sector that renewed concerns about the pace of a slowdown in economic growth.

The Nasdaq more than erased all of Thursday's 1.8% surge, on above average volume no less. Acting as the biggest drag was Intel Corp (INTC 17.10 -1.38), which plunged 7.5% after reporting a 57% decline in profits and lowering its Q3 sales outlook. Adding insult to injury was a 2.4% drubbing on the SnP 500's fifth most influential component -- Microsoft (MSFT 22.85 -0.55) -- as investors were hesitant to hold onto shares going into its earnings report after Thursday's close. Qualcomm (QCOM 35.85 -0.88) providing a disappointing Q4 outlook also weighed on sentiment and questioned the growth prospects of a sector that continues to underperform.

In stark contrast, there were two tech bellwethers out with solid earnings that enjoyed noticeable gains. Apple Computer (AAPL 60.50 +6.40) soared 12% after handily beating forecasts on stronger than expected Mac shipments while Motorola (MOT 20.60 +1.35) surged 7% after Q2 profits rose 48% on strong RAZR sales, which led to management guiding Q3 revenues sharply higher.

Be that as it may, with Fed Chairman Bernanke's final day of testimony as the center of attention [again] and the release of the FOMC Minutes from the June meeting only offering a slight hint of a pause on August 8th, a renewed wave of afternoon selling interest kept buyers on the sidelines for good and closed the major averages at session lows.

Even though Bernanke basically stuck to yesterday's script, managing to hit all the usual points relating to the moderating economy and risks to inflation, policy makers noting in the Minutes that "significant uncertainty accompanied the appropriate setting of policy going forward," also left investors uncertain as to whether the Fed will finally take a breather after two years of tightening. In fact, while members unanimously voted to raise rates to 5.25% at the last meeting, members had difficulty judging whether the level of rates was now "modestly restrictive or somewhat accommodative," with one member even indicating that the decision to raise rates at the June meeting was "a close call." The Fed's uncertainty aside, it is our belief, based on Bernanke's more recent testimony, that the end of the tightening effort is indeed near.
NYSE Adv/Dec 1079/2187...Nasdaq Adv/Dec 745/2253