Dow Recovers Early From Opening Tumble

The Dow Jones Industrial Average opened sharply lower, then recovered to rise
more than 30 points to over 11,180, about 0.27% higher. Traders were losing hope
for economic help after Federal Reserve Chairman Ben Bernankes speech in Jackson
Hole, Wyo. Insurance stocks were off as the East Coast braced for Hurricane
Irene. Financials were giving back yesterdays gains made from Thursdays
announcement of Warren Buffett and Berkshire Hathaways (NYSE: BRK.A ) investment
of $5 billion in Bank of America (NYSE: BAC ). For the year, the Dow is down
more than 5.2%. Over the past five trading days, it is up more than 1.4%. After
leading the market yesterday as a gainer, Bank of America was off more than 1.5%
to under $7.50 per share, losing more than 12 cents. Bank of America is the
worst-performing stock on the Dow for 2011. It is up more than 9% for the week
on Buffetts investment. Chevron (NYSE: CVX ) was down about $2 and 2% to around
$94. The falling price of oil has Big Oil and the energy sector falling. For the
month, Chevron is down about 8%. Big Pharma also was being battered this
morning, with Johnson & Johnson (NYSE: JNJ ) lower by about 2.25% to under $63 a
share, a loss of more $1.50. Johnson & Johnson is up more than 2% for the week
and 6% for the year. Intel (NASDAQ: INTC ) was up more than 1.3% to almost
$19.70, gaining around 1.35% as the tech sector rallied in the morning session.
Intel is up almost 11% for the year and is picking up support as an income
stock, with a dividend yield over 4.3%. Microsoft (NASDAQ: MSFT ) was higher by
about 16 cents, or 6.5%, to around $24.75 in early morning buying and selling.
Merger activity in the tech sector is reaching record levels, with over $323.3
billion in deals already for 2011. Microsoft is up almost 6% for the year.
Joining the other techs in moving up on the Dow this morning was Cisco (NASDAQ:
CSCO ), jumping more than 1.25% to over $15.25, a gain of about 20 cents. Cisco
recently was upgraded by Wunderlich, and its announced cost-cutting measures
have pleased Wall Street. Jonathan Yates does not own any of the stocks
mentioned in this article.