Market Summary

Wall Street finished mixed on Monday as traders gear up for the start of the Fed’s two day March FOMC meeting. More downbeat housing news and a higher greenback sent stocks down early, but a rebound in the financial sector helped push the broader market higher. The blue chips saw their 5th consecutive gain, advancing 17.46 points, or 0.16 percent, to 10,642.15. The Standard & Poor’s 500 Index added 0.52 point, or 0.05 percent, to 1,150.51. Tech was weak in trading as Nasdaq Composite Index slipped 5.45 points, or 0.23 percent, to 2,362.21. Outside of tech energy and raw material stocks were hit by the rising dollar. Perfect transition into crude prices on the session!

Crude oil fell $1.84 to $79.41 per barrel on the NYMEX. I love it, suddenly there are demand concerns in the U.S. There were never demand concerns as crude spiked from under $70 to test $83. Oh well enjoy the ride back down, especially if the greenback shows the strength it did today.

We did have more decliners than advancing stocks on the session however, while volume came in at its 3rd lowest of 2010. I haven’t even talked about Senator Dodd’s financial regulatory reform bill and how Wall Street feels about that.

Economic Rundown

The National Association of Home Builders, which releases the housing market index as a gauge of industry confidence, fell two points to 15 in March. Not surprising considering sales of newly built homes tanked 11 percent to a record low in January, the third consecutive monthly decline. NO love for existing homes either as sales declined 7 percent to June 2009 levels.

Just like the ISM calculation, a figure over 50 indicates positive sentiment. Last time we were there was April…of 2006

Industrial production and capacity utilization beat the street as factory output came in greater than expected, however the market wasn’t too impressed. Industrial production rose 0.1% in February, after rising 0.9% in January, while capacity utilization rose to 72.7% from 72.5% in January.

Market Summary

Stocks finished mixed on Friday on conflicting economic reports, unable to hold onto slight premarket gains. At the closing bell, the Dow Jones Industrials rose 12.85, or 0.1 percent, to 10,624.69. The broader S&P 500 index slipped 0.25, or less than 0.1 percent, to 1,149.99, unable to climb back over 1150. 12 of the last 15 fays have been up for the broader market. The Nasdaq composite index fell 0.80, or less than 0.1 percent, to 2,367.66.

The volume was light, but the gains were real for the week as the blue rose 0.6 percent, the S&P 500 index rose 1 percent and the technology-dominated Nasdaq climbed 1.8 percent.

Coming up this week, we have the March FOMC meeting, as well as reports on industrial production, housing starts and building permits and producer and consumer prices.

So Thursday is the opening night for March madness in college basketball, and figures show that the economy will lose roughly $1.8 billion in productivity as workers tune in to the games and tune out of their daily tasks.

Economic Rundown

Retail sales posted a surprising increase in February. The advance was the largest since November. According to the Commerce Department, retail sales rose 0.3 percent in February, surpassing expectations that sales would decline by 0.2 percent. The gain came despite a 2 percent decline in auto sales, hampered in part by the whole Toyota mess. Restaurants and bars saw a 0.9 percent advance, which was their largest in nearly 2 years.

Showing the disconnect between consumers attitudes and behaviors, the first reading of consumer sentiment for the month of March fell to 72.5 from 73.6 in February. Consumer expectations about future activity declined to 67.2 from 68.4. Economists had been expecting a slight uptick to 74. A weak labor market and higher energy prices, don’t forget some large premium increases on health insurance plans sums up the fears and concerns weighing on public spending. But they spend anyway, especially in February despite the wintry weather across the country.

Market Summary

Stocks recovered from modest losses to finish strong into the closing bell on Thursday. In the premarket, a disappointing jobless claims report didn’t do much to reverse already red futures. Major averages turned late in the afternoon to close with solid gains, and a new 17 month high for the broader market. The Dow Jones industrial average rose 44.51, or 0.4 percent, to 10,611.84. The S&P 500 index advanced 4.63, or 0.4 percent, to 1,150.24, while the Nasdaq advanced for the 6th consecutive session, rising 9.51, or 0.4 percent, to 2,368.46

Market breadth was also positive, as advancing shares outpaced declining shares roughly 8:7 on the NYSE, on 750 million worth of volume. Will we see new money be put to work following the new highs on the S&P?

U.S. light crude oil for April delivery rose 2 cents to $82.11 a barrel on the NYMEX, while gold advanced $1 to settle at $1,108.20 per ounce.

The street had a lot on its plate today, with jobless claims, and news overnight from China where stronger than expected inflationary pressures were shown. This is not the good old days where the domestic market is the driving factor, the global economy is heavily reliant on the worlds fastest growing economy.

Jobless Claims Fall Less Than Expected

According to the Labor Department’s weekly report, initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 462,000 in the week ended March 6, down from a revised 468,000 the prior week.

Analysts had expected claims to drop to 460,000 from a previously reported 469,000 the prior week. The four-week moving average of new claims rose 5,000 to 475,500, the highest since late November. The number of people still receiving benefits after an initial week of aid rose 37,000 to 4.56 million. Continuing claims had been expected to hold steady at 4.49 million.

Trade gap unexpectedly shrinks

According to the Commerce Department, the U.S. trade deficit narrowed by 6.6% to 37.3 billion in January from a revised $39.9 billion in December, as Americans imported the fewest barrels of crude oil in a decade; what does this mean for demand and economic growth?Economists had predicted a deficit of $41.0 billion.

Exports decreased 0.3% to $142.7 billion breaking a string of 10 consecutive monthly increases, on fewer shipments of commercial aircraft and autos. Imports fell 1.7% to $180 billion.

Market Summary

Stocks moved higher early in the session on hump day as a decline in inventories and a rise in sales created optimism that orders will soon have to increase to support increasing demand in the growing economy. Major averages moved back and forth between breakeven in the afternoon as commodity prices retreated.

At the closing bell, the blue chips rose 2.95, or less than 0.1 percent, to 10,567.33, while the S&P 500 index gained 5.16, or 0.5 percent, to 1,145.61Today is the 10 year anniversary for the Nasdaq’s all time close. The index is down roughly 55% from its March 2000 high after climbing 18.27, or 0.8 percent, to 2,358.95.

Financials led the overall market higher on Wednesday as speculation surfaced that regulators might consider banning short-selling in the shares who were bailed out by the government. So we saw a nice short squeeze in Citigroup Inc (C), (FNM) (FRE) and American International Group Inc (AIG). Tech was also a sector leader, Apple Inc (AAPL), Cisco Systems, Inc (CSCO), Google Inc (GOOG)

Crude was unable to hold onto the days gains, closing nearly flat at $81.50 per barrel after being up as much as $83.03. According to the Energy Information Administration, crude inventories grew last week by 1.4 million barrels to 343 million barrels. Analysts expected a build of 2.1 million barrels, very bullish as we have seen a month long rise in energy costs.

Economic Rundown

Wholesale inventories fell in January even though sales rose for a 10th consecutive month. The Commerce Department reported that inventories at the wholesale level were reduced 0.2 percent in January following a 1 percent drop in December. Analysts had been looking for a 0.2 percent gain in inventories. Sales showed a strong 1.3 percent gain, the best showing since a 3.6 percent rise in November. Businesses will eventually have to start building inventory as sales continue to advance.

At current levels, it would take 1.1 months to deplete inventory at currents levels, a record low.

Market Summary

Stocks recovered early losses to finish slightly positive on Tuesday, extending year over year gains from the mass panic of the 3/9/09 lows. Major averages did close below intra day highs which occurred in the early afternoon. On a quiet news day, the blue chips advanced 11.86, or 0.1 percent, to 10,564.38. The Dow is up 61 percent off of last years low. The S&P 500 index rose 1.95, or 0.2 percent to 1,140.45 and is now up 68.6 percent in the past year. The Nasdaq composite index gained 8.47, or 0.4 percent, to 2,340.68. Volume was slightly heavier than on Monday when the markets finished mostly lower.

Financials led the way following positive comments regarding taxpayer owned giant Citigroup Inc(C) and British institution Barclays (BCS). If banks can get healthy, and not the type of healthy that feeds off of free taxpayer money, than we could start to see some real credit flowing into small business, while conversely see improving mortgage portfolios

Crude trimmed some of its morning losses as equities turned. Benchmark crude for April delivery lost 38 cents to settle at $81.49 per barrel on the NYMEX. Gold closed down $1.70 to $1,122.30 an ounce.

On the Corporate Front

Texas Instruments (TXN), announced a toned down sales and earnings outlook for the first quarter. TXN expects revenue between $3.07 billion and $3.19 billion, compared with a previous range of $2.95 billion to $3.19 billion. The chip maker also forecast earnings per share of 48 cents to 52 cents, compared with a previous range of 44 cents to 52 cents a share.

The street is looking for earnings of 49 cents per share on revenue of $3.1 billion.

On the Jobs Front

Job Openings Jump to Start 2010

The number of openings in January rose about 7.6 percent, to 2.7 million, compared with December. That’s the highest total since February 2009. There are roughly 5.5 unemployed people competing for each open position, compared with 6 the prior month. Back in December of 2007, only 1.7 people were competing for hire. Hopefully this is a beginning of a trend. Lots of times however, jobs go unfilled because higher ups never allocate the money to fill the positions

Market Summary

Stocks were little changed on Monday, with a lack of movement in either direction of breakeven to start the week (despite the deal between American International Group Inc and MetLife ). Very positive that traders didn’t give up on last weeks big gains as Wall Street’s latest bull market turns one tomorrow. March 9 was the historic low close during the financial crisis, a mark not seen since the beginning of Bill Clinton’s second term.

The Dow Jones industrial average lost 13.68, or 0.1 percent, to 10,552.52. The Standard & Poor’s 500 index put its 6 day winning streak on the line today and came up short handed, falling 0.20, or less than 0.1 percent, to 1,138.50. Tech led the Nasdaq to its highest levels since the fall of Lehman Brothers, rising 5.86, or 0.3 percent, to 2,332.21. Small caps performed nicely despite the stronger dollar as the Russell 2000 gained 1.09, or 0.2 percent, to 667.11.

I wonder what this new revolutionizing product announcement Cisco Systems (CSCO) will be tomorrow. Investors are intrigued as well as it was the best performing blue chip on the session.

Oil was not able to break through that $82 barrel mark today, and throughout the year this has been the top level before falling back. Look for Wednesday’s inventory report to push it either way. Crude settled up 37 cents to $81.87 a barrel on the NYMEX. .

One Year Later

Its like the dawn after D-Day or some biblical reference; the reemergence of the U.S. financial markets from the abyss to the mountaintops. The broader market is up nearly 70 percent year over year. I am in the camp that we are more likely to see a 10 percent correction than a further 10 percent advance. However earlier in the year we saw an 8 percent move to the downside, but markets held steady despite breaking 10K on the Dow and have rebounded nicely.

This factoid from Yahoo stunned me, well maybe not stunned me but if it in fact holds true even in this new normal, then yes, I will be stunned. “The 13 bull markets since 1930 that have lasted more than a year have averaged, a total gain of 153% and a total length of 4.4 years, according to data from Bespoke Investment Group.”

The research firm defines a ‘bull market’ as an advance greater than 20 percent that follows a fall in excess of 20 percent. And yep, we fell by more than 20 percent the last time I checked…

It’s about time we see some fresh money come into the market to give it another leg up this year. Free money is powering this market forward, and major averages are looking good through 2010.

Market Summary

A better than expected jobs report Friday sent stocks soaring into the weekend. Despite a still net jobs loss for the month of February investor optimism sent the Dow up 122.06 points, or 1.2 percent, to 10,566.20. The Standard & Poor’s 500 index advanced for a sixth straight day, rising 15.73, or 1.4 percent, to 1,138.70. The Nasdaq composite index added 34.04, or 1.5 percent, to 2,326.35.The Russell 2000 index of smaller companies rose 13.55, or 2.1 percent, to 666.02.

Crude oil for April delivery climbed $1.29 to $81.50 a barrel on the NYMEX as an improving economic outlook expanded past the equity markets.

What a week to begin March! The blue chips closed the week up 240.94 points, or 2.3 percent, at 10,566.20. The Standard & Poor’s 500 index rose 34.21, or 3.1 percent, to 1,138.70. The Nasdaq composite index climbed 88.09, or 3.9 percent, to 2,326.35.The Russell 2000 index leaped 37.46, or 6 percent, for the week to 666.02.

Heading into the Spring, I am not sure how strong the conviction of the recent buying has been, and a 10 percent down move is more likely than a 10 percent move up.

Inside the numbers of the Employment Situation

The report hit the wires at 8:30 Friday morning, with economists estimating nearly 60,000 job losses during the month, less than one tenth of the amount one year prior. .Trillions have been spent to stop the gushing. The market is stabilized, and we are poised for job gains in the second quarter. There continues to be a disconnect between the household survey which provides the unemployment rate, and also is more accurate in tracking small business growth, and the Labor Department’s report. The unemployment rate held steady at 9.7 percent, below the 10 percent psychological barrier. We have not seen an uptick in the unemployment rate since October.

Overall, 36,000 jobs were lost in February, while January’s figure was revised downward by 6 thousand to 26,000 jobs lost. It will be a daunting task to get a majority of these 8.4 million jobs lost since the recession began in December 2007.  The week leading up to the report was full of talk regarding the snow across the nation in the month, and how that would affect the reading. Please, Americans are tougher than that! However Canadia, eh?

The real national unemployment rate rose to 16.8 percent from 16.5 percent. The government needs to pull out all the stops to make job creation in the private sector possible, Bernanke is saying and doing all the right things out of the fed, while Congress is Congress and doesn’t seem to realize there is a jobs problem.

So another month down, but more of the same. We need a jumpstart people, lets go! My employment plpan is called InvestorsUnderground, where we dominate in chat !

Market Summary

Stocks were narrowly mixed in trading today. A decline in pending home sales, which solidifies the slowdown in the housing recovery, kept the major averages in check after a busy day of economic data. Of course, traders await the February employment situation tomorrow in the premarket, which is going to cause a lot of headaches for economists as major snowstorms across the country skewed the data.

As for today, light volume and some sort of optimism I guess over tomorrow’s jobs number sent the market higher into the closing bell.
The blue chips advanced 47.38, or 0.5 percent, to 10,444.14, and now is in positive territory for 2010. The Standard & Poor’s 500 index gained 4.18, or 0.4 percent, to 1,122.97, while the Nasdaq composite index rose 11.63, or 0.5 percent, to 2,292.31. Retailers were strong after nice chain store sales results for February, and with an early Easter shopping season, March is expected to beat the street as well.

Crude oil fell 66 cents to settle at $80.21 per barrel on the NYMEX as the greenback rose. The yield on the 10 year treasury fell 2 basis points to 3.61 percent.

Economic Rundown

Initial claims for state unemployment benefits dropped 29,000 to a seasonally adjusted 469,000 according to the Labor Department. The reading was in line with market expectations. The four-week moving average of new claims fell roughly 3,000 to 470,750. Continuing claims dropped to 4.5 million to the lowest level in over a year.

While costs are falling, if anything putting additional deflationary pressures on the economy, productivity rose at a brisk 6.9 percent annual rate in the fourth quarter, rather than the 6.2 percent pace estimated last month. Americans are being more productive than ever, well you have to be or your employer will go pick one of the 10 percent unemployed who will be productive.

Unit labor costs fell a sharp 5.9 percent in the fourth quarter, more than initially estimated. Compared to a year earlier, unit labor costs were down a record 4.7 percent.

The New York Times (or some may say left wing loons) wrote an article looking at the possibility of a double dip, how the credit bubble is still rippling through the economy, while economic data has been on the decline. Slack continues to build in the economy ahead of Friday’s jobs number, while winter weather could severly dampen Q1 GDP.

We’re now in the midst of the worst run of economic news in almost a year. Home sales have dropped. So has consumer confidence. Stocks peaked on Jan. 19.

This Friday may well bring the darkest piece of news yet, at least on the surface. Forecasters are predicting that the Labor Department will report that job losses accelerated in February, perhaps back above 100,000. The main reason will be the temporary hit from the big snowstorms last month. Yet there is reason to wonder if the economy also has bigger problems.

The weekly data on jobless benefits are narrower and less consistent than the monthly jobs report, but they have the advantage of being more current. From early January to late February, the number of workers filing new claims for jobless benefits rose 15 percent. Over the previous nine months, this number was generally falling.

Economies rarely move in a straight line, and — as the better-than-expected numbers on Tuesday on vehicle sales suggested — the recent run of bad data is probably overstating the troubles. But whatever you thought at the start of the year about the recovery — strong, moderate, fragile — you probably need to be more pessimistic today.

The economy’s biggest problem has not changed. When bubbles pop, they wreak enormous, lasting damage. Credit stays hard to get for years because banks need to rebuild their balance sheets. Families and businesses, whose net worth isn’t what they thought it was, have debts to pay off.

The average household still has debt that eats up roughly 17.5 percent of its disposable income — in mortgage payments, minimum credit card payments and the like. That’s down from a peak of 18.9 percent in 2008. It is still above the 1980-95 average of about 16.6 percent, according to the Federal Reserve. So debt payments will continue to hold down spending in the months ahead.

The economy did so well late last year in large part because companies began building up inventories they had whittled when they cut production during the recession. What worries some forecasters is that this buildup won’t last. Consumer spending, they say, will remain too weak to get companies to keep increasing production and to begin adding workers.

I am split, and have been about a double dip. Employment is only going to improve. But a stall in housing, credit or no credit and continued deleveraging by consumers and business doesnt add up well.

Market Summary

Well I was skeptical in the premarket and rightly so as stocks never got much higher after the opening bell.

Wall Street advanced once again on Tuesday, despite closing off of the session highs. The Dow Jones Industrials ended up just 2.19 points, less than 1 percent to 10,405.98. The broader Standard & Poor’s 500 index advanced 2.60, or 0.2 percent, to 1,118.31, and the Nasdaq climbed 7.22, or 0.3 percent, to 2,280.79. The Russell 2000 index of smaller companies rose 5.66, or 0.9 percent, to 648.31. Equities weren’t able to ride the global momentum; however trading was very subdued with little action affecting the markets. Over in chat at InvestorsUnderground, as many of you know, there is always action!

Crude oil rose 98 cents to $79.68 per barrel on the NYMEX as the greenback made its way lower.

It is time to start looking ahead, as hump day approached tomorrow; we are getting awfully close to February’s Employment Situation. It is always entertaining to see the market react before and after the report.

Auto Sales Surge Higher

A combination of dealer incentives and put off demand led new car purchases better than expected in February. February sales came in at a seasonally adjusted rate of 10.4 million units, down 3.7% from January’s 10.8-million rate but 13.2% higher than the 9.2-million-unit rate in February 2009.Analysts had expected a 10.3-million-unit sales rate.

Automakers delivered a total of 780,265 units in February, up 13.3% from a year ago and 11.7% from January.

The big winner was Ford Motors (F), as sales hit 142,285 last month, up from 99,400 units a year ago and higher than estimates of about 129,200 units. February’s rise was the 16th monthly increase in 17 months for Ford, and increased its market share to 17% from 14% a year ago.

Ford also beat General Motors Inc for the first time since 1998. GM posted an 11.5% gain in February to 141,951 cars and trucks, well below economists’ estimates of a 24% increase.

Good for Ford, they did things the right way. They managed their cash, didn’t go crying to taxpayers, and now are well position in the domestic market. However, time will tell if that can last after the competitive advantage GM has of being owned by the U.S government.