Dow Enjoys a Rousing Start to the Week

After the worst four weeks since March 2009, the Dow Jones Industrial Average
started the new week strong, rising about 145 points, or 1.5%, to over 10,963 in
early morning trading. News from Tripoli, Libya, has traders in an up frame of
mind. The seemingly imminent fall of Moammar Gadhafi, the Libyan dictator who
gave rise to OPEC, is expected to lower oil costs, which will lead to more
growth and increased consumer spending. For the year, the Dow still is down more
than 5.4%, and it's down about 4.4% during the past five days of trading. With
global growth back in the forecast, traders couldnt wait to buy Alcoa (NYSE: AA
), raising the share price about 40 cents, around 4%, to over $11.60. The
aluminum producer was upgraded this morning by Davenport & Co. with a target
price of $18 over the next year. Alcoa is up about 7% for the year but down
almost 9% for the week and 30% for the month. There is a short float of 5.56%
for Alcoa, which is high. Boeing (NYSE: BA ) took off to more than $59.25 per
share, ascending more than $1.50 and 2.7%. Delta announced the purchase of 100
jets from Boeing, and England is buying 14 Chinook helicopters. Boeing is down
about 7% for the week, 20% for the month and 25% for the quarter. Boeing has a
relative strength index rating of 37, with 30 the standard for a stock to be
considered being oversold. Caterpillar (NYSE: CAT ) was plowing ahead in
early-morning action with gains of more than 2%, about $1.70, to take the price
over $83. The worlds largest construction equipment manufacturer hopes for
global growth to make up lost ground CAT is down more than 10% for the week and
almost 30% for the month. Caterpillar has an RSI rating of 35. Coming back
strong after announcing it would sell or spin off its PC unit last week,
Hewlett-Packard (NYSE: HPQ ) was up about 6% to more than $25 per share, a gain
of about $1.50, on a positive analyst rating from Auriga. Down almost 27% for
the week, Hewlett-Packard is down about 35% for the month and the quarter. HPQ
has an RSI rating of under 27. Up about $1, or 1.5%, to over $88.50 was
McDonalds (NYSE: MCD ). MCD is benefiting from all possible worlds: MCD is
viewed as a safe-haven stock, it is attracting flight capital, it has received
eight positive analyst recommendations and no negatives, it has strong earnings,
those seeking growth are buying, and with a dividend of more than 2.4%,
McDonalds offers income. McDonalds is up for the week, month and quarter. For
the year, MCD is up more than 23%. Opening lower, then battling to a gain, then
slipping again in mid-morning action was Bank of America (NYSE: BAC ), which was
down more than 10 cents, or 1.5%, to under $6.90. Recently announcing it would
lay off thousands with more likely, Bank of America is the worst-performing
stock on the Dow for 2011. It is down more than 3% for the week, more than 30%
for the month, almost 40% for the quarter and more than 45% for the year. Bank
of America has an RSI rating of 33 and a short float of 1.3%. Jonathan Yates
does not own any of the stocks mentioned in this article.