Market Alert: Should Investors Reconsider Bank of America (BAC)?

Market Alert: Should Investors Reconsider Bank of America (BAC)?

The market moved slightly higher at the open with enthusiasm about yesterdays Fed statement tempered by an unexpected jump in jobless claims. The Labor Department said initial claims for unemployment increased to a seasonally adjusted 558,000, from 554,000 the previous week. Analysts expected new claims to drop to 545,000. The number of people remaining on the benefit rolls, meanwhile, fell to 6.2 million from 6.34 million the previous week. Analysts had expected a smaller decline. The continuing claims data lags initial claims by one week. The Commerce Department said total retail sales edged down 0.1 percent from increasing a revised 0.8 percent in June. Sales in June were initially reported to have risen 0.6 percent. Analysts had forecast retail sales rising 0.7 percent in July, expecting a boost from the government's "cash for clunkers" program. Gasoline station sales fell 2.1 percent in July, reflecting a retreat in gasoline prices during the month, after surging 6.3 percent in June. The number of U.S. households on the verge of losing their homes rose 7 percent from June to July, as the escalating foreclosure crisis continued to outpace government efforts to limit the damage according to RealtyTrac Inc. Oil prices rose above $71 a barrel as stock markets rallied and after the International Energy Agency boosted its global crude demand forecast..

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Sectors starting the day out strong include diversified financial services, diversified metals & mining and multisector holdings while auto retailers, broadcasting, department stores and homebuilding are down.