The Dow Jones Industrial Average is trading within a tight range today, and as of noon it sits less than four points above breakeven. If the index can maintain the positive momentum through the trading session, it will be on a nine-session winning streak, breaking yet another record set two years ago.
With the federal budget due this afternoon, that new record may be facing a large headwind. But many view the Dow's journey north as unrealistic for our economic condition, so the budget may not affect investors' enthusiasm the way it normally would.
With Dow components split between winners and losers, it's anybody's guess where the Dow will end the trading session.
Losers dragging the index down Bank of America Corp (NYSE:BAC) is the biggest loser so far today, down 1.3%. The bank has been reaping the benefits of its stress test results, but investors will be more interested in what the Fed has to announce this Thursday. In the second set of results -- the banks' ability to manage dividend increases and share buybacks -- many investors are anxious to see whether BAC will finally be permitted to raise its penny-per-share dividend. While Bank of America Corp (NYSE:BAC) passed the first round, it has not received the full force of consumer confidence, as its compatriot Citigroup Inc. (NYSE:C) has. Citi was up 3% after the first round of results was announced, while B of A only got a 0.3% boost. We'll see how both these banks fare at the end of the week.
General Electric Company (NYSE:GE) is down for a second day, having lost about 0.9% at midday. The company is facing criticism from various angles and was recently downgraded by Wall Street analysts. From 2011 to 2012, CEO Jeff Immelt's pay was increased by 80%. Though the company just inked a deal with Health Trust to provide new health-care equipment, the massive raise in Immelt's pay is raising eyebrows. GE is also looking at a potential expansion of its multiyear cleanup of contaminants in the Hudson River. It's no wonder, with all of this news, that GE has become one of the most shorted stocks on the market.