Johnson & Johnson’s Disappoints – July 20, 2010

Johnson and Johnson’s (J&J) or JNJ in the New York Stock Exchange disappointed those who are long on the stock when the company, global pharmaceutical and consumer goods manufacture firm, posted a 5.4% decline in the sales of their consumer products for the second quarter of the year. Much of the company’s slide in profits could be attributed to the closure of its Pennsylvania plant due to the failure of its 40 children products to meet the US FDA’s quality control standards. Still, the company earned $3.45 billion in the second leg of the year which was better than the $3.21 billion it had during the previous period. Nonetheless, the slide in their sales resulted to a 1.5% drop in the valuation of their stocks.

Technically, the shares of JNJ likewise gapped down following the company’s less-than-stellar sales figure. In the process, their stocks broke below its short term uptrend line and also fell under its 50-day and 200-day moving averages. So in order for it to be on the positive path again, it now needs to move past the former uptrend line and the 2 MAs. With the RSI falling less than 50 and the MACD just turning negative, the stock would more likely head lower. And if and when it does, its next support would be at 57.50.

Related posts:

1. IBM Shares Sink Despite Earnings – July 20, 2010 The shares of International Business Machines or IBM in the...
2. Oh Google Stocks – July 19, 2010 During the whole year of 2009, the stocks of the...
3. Profits of Texas Instruments: Up, Up and Away! – July 20, 2010 Texas Instruments Incorporated (widely known as TI) or TXN in...
4. A Head and Shoulders in the Ford Motor Company? – July 1, 2010 Ford Motors or F in the New York Stock Exchange...
5. Profits Flying with Delta Air Lines – July 20, 2010 Delta Air Lines, Inc. or DAL as listed in the...

Related posts brought to you by Yet Another Related Posts Plugin.

By: Ron Acoba on July 20, 2010 at 6:11 pm