With new jobless claims continuing to disappoint and the financial stocks suffering with earnings in the forefront, Bank of America (NYSE: BAC) slid 18% today as investors and managers looked for answers. Managers of the bank said they were surprised to find heavy losses at Merrill Lynch & Co as they prepared to finalize a merger with the troubled investment bank.

Advanced Medical Optics (EYE) Purchase Might Create an Abbott (ABT) Buying Opportunity

Reports came out this morning that Abbott Laboratories was purchasing Advanced Medical Optics for $2.8 Billion or $22 a share in cash and assumed debt. Advanced Medical Optics is a California based eye-care device maker with revenues of $1.2 Billion a year and earnings per share of 38 cents. Best known for it's Laser Eye technologies, the company's stock price has declined near 56% over the past 52 week. The purchase price represents more than a doubling of the previous trading day's price.

You wouldn't know it from the news or from the action of the stock market today as continued negative economic data has caused a slight sell off in the markets. But the Nasdaq Compositve, the DOW Jones Industrials, the Russell 2000, and the Standard & Poors 500 have all given buy signals in recent days with their 13 day moving averages crossing their 50 day moving averages.

With a recent Buy initiated by Standpoint, continued growth in revenue and earnings, and the anticipation of an large infrastructure plan by the new US Administration, Jacobs Engineering looks like a buy at this time.

This market has been difficult to predict and I still favor a largely cash based portfolio until there is a clear break to either the upside or on the downside on the major indices.  That being said, it appears that the markets are beginning to break down from what was looking like a possible bottom. Therefore, I have three stocks today that broke down prior to the overall markets and signaled a hold within the past week.

Gilead Sciences breaks out of a trading range with the possibility of moving higher on analyst’s upgrades, improving profitability and a patent infringement case against Teva Pharmaceuticals.

The Federal Reserve cut lending rates aggressively on Tuesday allowing banks everywhere to offer 30 year mortgages at near 95 year record lows. The average rate dipped initially from 5.06% on Monday to 5.01% Tuesday. The rate banks can now lend to one another is set in a range from 0.25% to 0%. Plus the Federal Reserve continues to plan out the purchase of up to $500 billion in mortgage back bonds currently held by banks.

With the New Year and the 2008 Tax Season right around the corner, H&R Block is experiencing some buying interest which could translate into a buying opportunity. This past week the 13 day moving average (MA) crossed the 50 day MA for the stock indicating a technical break upward. The company has a decent dividend and has run from April till July the last four years.

Sony is planning on cutting 8,000 jobs to reduce expenses by $1.1 billion as the company struggles to stay profitable. They will also delay spending on manufacturing and streamline their supply chain. Technology companies in Asia are worried that others may have to take similar steps as the worldwide slow down has reduced demand to high-definition television sets, computers, and other small electronic devices.

Retailer in general and online retailers such as Amazon.com (NASDAQ: AMZN) rallied on Wednesday sending the markets upward for a strong finish to a lackluster day. Amazon moved 9.5% higher after comScore reported that sales online on Monday were 15% higher or $846 million more than last year on what is now called CyberMonday.