ENERGY STOCKS ADVANCE IN MIXED MARKET -- BJSERVICES HITS NEW RECORD -- BIOTECHS CONTINUE RALLY AS MEDIMMUNE BREAKS OUT -- SOX PULLS NASDAQ LOWER -- JNJ, XOM, AND RJR KEEP BIG BOARD IN THE BLACK
OIL SERVICE STOCKS ARE BIGGEST GAINERS --... Energy stocks were standout performers in a mixed market today. Percentage-wise, oil service stocks showed the biggest gains in the oil patch. Chart 1 shows the Oil Service Index climbing to the highest level in two months. Its relative strength line is close to an upside breakout. Chart 2 shows the AMEX Energy SPDR reaching a new 52-week high and on rising volume. Higher energy prices -- combined with shooting in Iraq today -- appear to be driving more money to the energy sector. That same shooting may also have short-circuited this morning's gains in the rest of the market. In addition to energy, other pockets of strength were in healthcare -- mainly drugs and biotechs. Gains in Merck and JNJ helped keep the Dow in positive territory. The Biotech Index hit another 52-week high today in a continuation of yesterday's breakout. Medimmune was the biggest percentage gainer in the S&P 500. Tobacco stocks were also strong. All three groups qualify as defensive stocks. Selling in semiconductors undermined the Nasdaq which closed in the minus column.
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RIG AND BJS ARE OSX LEADERS... Two of the five top percentage gainers in the S&P 500 are shown below. Transocean gapped over its 50-day average on rising volume as it plays catch-up to the rest of the group. The most impressive chart action, however, belongs to BJServices. Its daily chart shows the oil leader reaching new high ground. Its monthly chart, however, shows that the oil leader has broken out to record territory.
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BIOTECHS HIT NEW HIGHS -- MEDIMMUNE BREAKS OUT... The Biotech Index built on yesterday's upside breakout. Its relative strength line has also broken out. One of today's biotech leaders was MedImmune which broke through 25 on strong volume. MEDI was the biggest percentage gainer in the S&P 500.
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SOX WEIGHS ON NASDAQ -- JNJ, XOM, AND RJR BOOST NYSE... The Semiconductor (SOX) Index ended the day back under its 200-day moving average. Its relative weakness undermined the Nasdaq market which ended lower. Meanhile the Dow and the S&P 500 ended the day in the plus column. The Dow got help from Johnson & Johnson and Exxon Mobil, which reflected strength in drugs and energy. The S&P 500 drew strength from RJ Reynolds Tobacco, which reflected strength in tobacco.
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