Stocks Stay On the Mat

Remember Tuesday? Remember when stocks sold off to a pretty fair degree
especially tech due to a deadly combination of momentum reversal, higher oil
prices and developments in Libya? Then Wednesday will seem pretty familiar.
Stocks hit the skids again on Wednesday, as repeated attempts by the broader
market to avoid a second consecutive losing day couldnt get the job done. Tech
stocks again led the market lower, as they had done on Tuesday the Nasdaq fell
1.2% to 2723, its lowest level in about three weeks. The Dow Jones Industrial
Average fell 107 points to 12,106 and the S&P 500 lost 8 points to 1307. The fix
was in early for tech on Wednesday a profit report late Tuesday by
Hewlett-Packard (NYSE: HPQ ) that offered a dour first-quarter forecast had cast
a long shadow right into Wednesdays opening bell. H-P shares ended Wednesday
down 9.6%. H-P cited weak consumer spending on PCs, which led investors to
wonder: Does that mean everyone is instead snapping up Apple (NASDAQ: AAPL )
iPads, or are we facing a consumer retrenchment in general one that is only to
be exacerbated as we all spend more of our disposable income on gasoline? As we
saw on Tuesday, however, the reversal in semiconductor stocks, which had been so
key in leading tech higher during the past six months, was again key to the
sectors flailing once again. On Wednesday the Semiconductor HOLDRs (NYSE: SMH )
exchange-traded fund was down 1.5%, which followed a drop of nearly 3% on
Tuesday. But oil prices were again garnering much of the market-causation
headlines on Wednesday, and certainly when crude oil touches a big round number
like $100 a barrel, investors will take notice and buy and sell accordingly
(crude ended up 2.8% to $98.10). Unsurprisingly, gas and oil ETFs did extremely
well on Wednesday (again), and you may have noticed the big, ole ExxonMobil
(NYSE: XOM ) has now gained 5% in one week. It also will seem perfectly logical
that auto stocks and airlines were again on the losing end Wednesday, as higher
gas and fuel prices leave consumers no choice but to cut back on all forms of
travel if this trend keeps up. One interesting note was the 10-year Treasury
note yield pushing reverting higher to 3.48% after a two-week dip. Perhaps bonds
are signaling that a third consecutive down day for equities isnt in the cards.