Investors digested a slew of economic and earnings news on the 9th day of the current rally attempt.  Volume, a critical indicator of institutional sponsorship, was near the prior session total on the Nasdaq exchange and lighter on the NYSE compared to the prior session. Advancers led decliners by a 2-to-1 ratio on the NYSE and by a 3-to-2 ratio on the Nasdaq exchange.  New 52-week highs outnumbered new lows on both exchanges and new lows were in the single digits.  There were 21 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from the 27 issues that appeared on the prior session.

The earnings and economic news of the day sent mixed economic signals to investors. Retail giant Wal-Mart (WMT -1.09%) gapped down and sliced below its 50-day moving average (DMA) line after reporting tepid Q4 results. Earnings rose +9% and sales rose +1% vs. the same period in the prior year. While an improvement from the first three quarters of 2009, analysts were expecting better results. Barring some unforeseen event, the average company in the benchmark S&P 500 grew its earnings close to +70% last quarter which snapped a record nine quarter losing streak.

The news on the economic front was lackluster at best. The Labor Department said the number of US workers filing new applications for unemployment benefits unexpectedly jumped last week. Initial jobless claims for state unemployment benefits rose +31,000 to +473,000 which paled in comparison to the Street's estimate of +430,000. Elsewhere, producer prices rose sharply last month which suggests inflation is on the rise. The producer price index topped estimates and rose +1.4% from December. Economists believe that higher energy prices and unusually cold temperatures sent prices higher. 

Commodity-linked groups, technology, and retail related shares were among Thursday's groups having a positive influence on the major averages. The Gold & Silver Index ($XAU +1.42%) outpaced the Oil Services Index ($OSX +0.94%) and Integrated Oil Index ($XOI +0.66%). There was a modest gain from the Retail Index ($RLX +0.76%) and smaller gains from the Bank Index ($BKX +0.17%) and Broker/Dealer Index ($XBD +0.26%).  The Networking Index ($NWX +1.24%) and Internet Index ($IIX +1.25%) led the tech sector, followed by a smaller gain from the Semiconductor Index ($SOX +0.29%).  The Biotechnology Index ($BTK +0.09%) ended barely higher while the Healthcare Index ($HMO -1.59%) was a standout laggard.

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index ($NWX +1.24%) rose back above its 50-day moving average (DMA) line with today's gain.

Priceline.com Inc. (PCLN +$20.08 or +9.43% to $232.95) gapped up today and hit a new 52-week high, triggering a technical buy signal while rising from a 9-week base. It returned to the Featured Stocks page today and was color coded yellow with pivot point and max buy levels noted in the earlier mid-day report (read here). In the most current (C criteria) quarter ended December 31, 2009 its sales revenues and earnings showed impressive acceleration yet again with increases well above the +25% minimum guideline. It has powerfully rebounded above its 50 DMA line and is now free from resistance due to overhead supply. Annual earnings growth (the A criteria) has been strong. An overriding concern currently is the M criteria which argues against new buying efforts until a solid follow-through-day from at least one of the major averages occurs.

Now listed in the Leisure-Services group to better reflect its primarily travel-related online services, PCLN was listed in the Internet - eCommerce group in the past.  A summary of CANSLIM.net's past coverage and the stock's subsequent action was published on 11/07/08 under the headline "Multiple Sell Signals Preceded Big Price Decline" . That write-up explained the stock's weak action after it had been dropped from the Featured Stocks list after its 200 DMA violation on July 2, 2008.  PCLN was first featured on Friday, November 09, 2007 in the CANSLIM.net Mid Day Breakouts Report after gapping up over the $100 threshold (read here). The current action may be signalling the beginning of another considerable and sustained rally.

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.