NEW YORK (CNN/Money) -
A drop in consumer confidence outweighed a jump in durable good orders Tuesday, as the Dow and Nasdaq gave up early morning gains and moved into the red.
The Conference Board said its closely watched index of consumer confidence fell to 93.5 in August from a revised 97.4 in July. Economists expected the index to fall to just 97, according to Briefing.com.
While the consumer confidence number pointed to further weakness in the economy, the durable good orders indicated some strength. The Commerce Department reported that orders for goods made to last three years or longer, such as cars and computers, rose 8.7 percent to $179.7 billion following a revised 4.5 percent drop in June. Economists expected durable-goods orders to rise 1.4 percent, according to Briefing.com.
For those looking to enter the markets Tuesday, two market strategists appeared on CNNfn to suggest some stocks in the energy, communications and manufacturing sectors.
Alan Ackerman, market strategist for Fahnestock & Co., advises clients who are interested in oil stocks to a look at some of the larger firms.
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Alan Ackerman's picks
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"Some of the bigger energy companies, the Exxons, the Chevrons, these are stocks that many of the analysts like and feel have enough strength to withstand a swing in market price should there be an invasion in Iraq," Ackerman said. "If an attack happens, we're likely to see a spike in energy prices, but it may not last."
Ackerman's other selection in the energy sector is Ocean Energy. "It's outperformed the S&P 500 over the last two years and it's going after billion barrel finds," he said. "It's covered by 30 big brokerage firms and most of them think the stock is a buy in here."
Shares of ChevronTexaco (CVX: up $0.35 to $79.42, Research, Estimates) are in a 52-week range of $93.77 to $65.64.
Exxon Mobil (XOM: up $0.57 to $37.24, Research, Estimates) shares have been between $44.57 and $29.75 in the last year.
Shares of Ocean Energy (OEI: up $0.16 to $22.14, Research, Estimates) are in a 52-week range of $22.85 to $14.00.
Dodge Dorland, chief investment officer with Landor Investment Management, suggests a play in Nextel Communications.
"This is a lower-price, higher-volume type stock, very active trading stock. Day traders have been coming in," Dorland said. "We're seeing a shift in day trading to longer term position traders and longer term investors moving into the stock."
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Dodge Dorland's picks
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Dorland's other pick is General Electric."There's a change in the perception of the company," he noted. "Jack Welch is no longer running it, and the current management from top to the middle levels of management is beginning to develop a brand product, a new brand name for GE so that it can rejuvenate itself. And what we're seeing is that investors are buying on the story."
Shares of Nextel Communications (NXTL: up $0.31 to $8.12, Research, Estimates) are in a 52-week range of $12.65 to $2.50.
General Electric (GE: up $0.21 to $32.28, Research, Estimates) shares have been between $42.30 and $23.75 in the last year.
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