Wall Street closes flat
March 3, 2010
Wall Street finished flat at the end of a day that saw the broader indices move either side of the gain line throughout. Better than expected economic data did little to provide comfort for investors as concern mounted following President Obama’s call for a final vote on health care.
In employment news, ADP reported that the private sector cut 20,000 jobs from their payrolls in February, which was in line with expectations and also the smallest number in two years.
In a separate report Challenger, Gray & Christmas said job cuts declined from 71,482 in January to 42,090 in February. This was the smallest reported job cuts since July 2006.
The Senate also voted to extend the deadline for unemployed Americans to apply for benefits.
Meanwhile, the Institute for Supply Management's services sector index rose from 50.5 in January to its highest point in over two years at 53 in February. Forecasts were for a rise to 51.
The Dow Jones lost 9.22 points, or 0.09%, to 10,396.76, the S&P's 500 added 0.48 points, or 0.04%, to 1,118.79 and the NASDAQ slid 0.11 points, or almost 0.01%, to 2,280.68.
Major financials were mainly lower. Bank of America and JPMorgan dipped 0.5% and 0.2%, while Wells Fargo bucked the trend adding 1.2%.
Obama’s call for Congress to pass health-care legislation sent healthcare stocks lower.
Pfizer dropped 1.6% after Medivation said its experimental Alzheimer's disease treatment Dimebon, which was in development with Pfizer, failed to produce the results they were hoping for in a late-stage study. Medivation shares sank 67.5%.
Wholesale retailers Costco and BJ’s Wholesale shed 1.1% and 5.1% after posting weaker than expected results.
Novell surged 28% after hedge fund Elliott Associates made an unsolicited all-cash offer forthe business software maker.
NYMEX light crude oil for April delivery rose US$1.19 to settle at US$80.87 a barrel.
Chevron and Exxon Mobil lost 0.3% and 0.1%.
COMEX gold for May delivery rose US$1 to US$1,139 per ounce.
European Markets
European stocks rose for a fourth day after Greece announced US$6.6 billion in additional debt relief and a rise in metals prices sent miners higher. Banks led gains after Standard Chartered released its results for 2009.
The UK benchmark FTSE 100 gained 49.15, or 0.90% to 5,533.21, while the French CAC40 added 30.60, or 0.80% to 3,842.52. The German DAX rose 41.32, or 0.72% to 5,817.88.
Standard Chartered climbed 5.3% after a 13% rise in annual profit met expectations. UK peers Lloyds and Barclays put on 2.7% and 2.5%.
Elsewhere, Societe Generale and Deutsche Bank gained 2% and 1.8%.
Legal & General jumped 5.1%, while Aviva added 2.9% ahead of the release of full-year results on Thursday.
Miners Anglo American, Antofagasta and Xstrata were between 3.7% and 4% higher.
Aussie peers Rio Tinto and BHP Billiton added 2.5% and 1.5%.
Gains among the energy majors were not as robust. BP, BG Group, Royal Dutch Shell and Total were all within 0.7% above the gain line.
Commodity prices were boosted by a weakening greenback.
Adidas dropped 4.1% after the sporting-goods maker reported a 64% fall in fourth quarter profit. Rival lost 2.4%.
Staffing company Adecco advanced 4% as it expects continued improved conditions.
Japanese Markets
Japan’s Nikkei also rose for a fourth consecutive session on optimism surrounding a bailout of debt ridden Greece. However, gains were limited as a strengthening yen placed pressure on exporters.
The Nikkei 225 added 31.30, or 0.31% to 10,253.14.
A rise in metals prices saw commodities traders Mitsubishi Corp and Mitsui & Co put on 2.1% and 2.6%.
A broker upgrade sent shares in Sumitomo Metal Mining 2.5% higher.
Steelmakers Nippon Steel and JFE Holdings added 1.8% each.
Toyota gained 3.2% after reporting higher than expected sales in the US during February.
Mazda and Nissan shed 2.2% and 0.4% as the yen climbed to more than a two-month high against the greenback.
Panasonic fell 1.5%.
Jtekt Corp slumped 4.1% as a result of General Motors recalling 1.3 million vehicles with the company’s power-steering motors.
Fast Retailing rallied 4.7% after the clothing retailer reported a 1.8% rise in February sales at stores open at least a year in Japan.
Hong Kong Markets
The Hang Seng, for the second straight day, was the only major global indices to lose ground Wednesday. A fall in property stocks, which were a source of strength last week, led the decline on fears the government would increase regulation in the industry.
The Hang Seng lost 29.32, or 0.14% to 20,876.79.
Bank of China rose 0.3%, helped by HSBC which put on 1.1%. ICBC, the country’s largest lender, gained 0.7%.
Heavyweight mobile carrier, China Mobile retreated 2.4%, while China Unicom was 1.81.8% weaker.
State controlled Sino Land slumped 2.9%, while Henderson Land shed 2.1%.
The rather descriptively named, China High Speed Transmission Equipment Group Co, put on 8.7% yesterday. Also Shanghai Electric Group Co, added 7%. Both stocks gained on speculation the Chinese would seek to limit carbon emissions, sending alternative energy stocks higher.
Among oil plays, Cnooc rose 0.3% and PetroChina gained 0.7%.
In employment news, ADP reported that the private sector cut 20,000 jobs from their payrolls in February, which was in line with expectations and also the smallest number in two years.
In a separate report Challenger, Gray & Christmas said job cuts declined from 71,482 in January to 42,090 in February. This was the smallest reported job cuts since July 2006.
The Senate also voted to extend the deadline for unemployed Americans to apply for benefits.
Meanwhile, the Institute for Supply Management's services sector index rose from 50.5 in January to its highest point in over two years at 53 in February. Forecasts were for a rise to 51.
The Dow Jones lost 9.22 points, or 0.09%, to 10,396.76, the S&P's 500 added 0.48 points, or 0.04%, to 1,118.79 and the NASDAQ slid 0.11 points, or almost 0.01%, to 2,280.68.
Major financials were mainly lower. Bank of America and JPMorgan dipped 0.5% and 0.2%, while Wells Fargo bucked the trend adding 1.2%.
Obama’s call for Congress to pass health-care legislation sent healthcare stocks lower.
Pfizer dropped 1.6% after Medivation said its experimental Alzheimer's disease treatment Dimebon, which was in development with Pfizer, failed to produce the results they were hoping for in a late-stage study. Medivation shares sank 67.5%.
Wholesale retailers Costco and BJ’s Wholesale shed 1.1% and 5.1% after posting weaker than expected results.
Novell surged 28% after hedge fund Elliott Associates made an unsolicited all-cash offer forthe business software maker.
NYMEX light crude oil for April delivery rose US$1.19 to settle at US$80.87 a barrel.
Chevron and Exxon Mobil lost 0.3% and 0.1%.
COMEX gold for May delivery rose US$1 to US$1,139 per ounce.
European Markets
European stocks rose for a fourth day after Greece announced US$6.6 billion in additional debt relief and a rise in metals prices sent miners higher. Banks led gains after Standard Chartered released its results for 2009.
The UK benchmark FTSE 100 gained 49.15, or 0.90% to 5,533.21, while the French CAC40 added 30.60, or 0.80% to 3,842.52. The German DAX rose 41.32, or 0.72% to 5,817.88.
Standard Chartered climbed 5.3% after a 13% rise in annual profit met expectations. UK peers Lloyds and Barclays put on 2.7% and 2.5%.
Elsewhere, Societe Generale and Deutsche Bank gained 2% and 1.8%.
Legal & General jumped 5.1%, while Aviva added 2.9% ahead of the release of full-year results on Thursday.
Miners Anglo American, Antofagasta and Xstrata were between 3.7% and 4% higher.
Aussie peers Rio Tinto and BHP Billiton added 2.5% and 1.5%.
Gains among the energy majors were not as robust. BP, BG Group, Royal Dutch Shell and Total were all within 0.7% above the gain line.
Commodity prices were boosted by a weakening greenback.
Adidas dropped 4.1% after the sporting-goods maker reported a 64% fall in fourth quarter profit. Rival lost 2.4%.
Staffing company Adecco advanced 4% as it expects continued improved conditions.
Japanese Markets
Japan’s Nikkei also rose for a fourth consecutive session on optimism surrounding a bailout of debt ridden Greece. However, gains were limited as a strengthening yen placed pressure on exporters.
The Nikkei 225 added 31.30, or 0.31% to 10,253.14.
A rise in metals prices saw commodities traders Mitsubishi Corp and Mitsui & Co put on 2.1% and 2.6%.
A broker upgrade sent shares in Sumitomo Metal Mining 2.5% higher.
Steelmakers Nippon Steel and JFE Holdings added 1.8% each.
Toyota gained 3.2% after reporting higher than expected sales in the US during February.
Mazda and Nissan shed 2.2% and 0.4% as the yen climbed to more than a two-month high against the greenback.
Panasonic fell 1.5%.
Jtekt Corp slumped 4.1% as a result of General Motors recalling 1.3 million vehicles with the company’s power-steering motors.
Fast Retailing rallied 4.7% after the clothing retailer reported a 1.8% rise in February sales at stores open at least a year in Japan.
Hong Kong Markets
The Hang Seng, for the second straight day, was the only major global indices to lose ground Wednesday. A fall in property stocks, which were a source of strength last week, led the decline on fears the government would increase regulation in the industry.
The Hang Seng lost 29.32, or 0.14% to 20,876.79.
Bank of China rose 0.3%, helped by HSBC which put on 1.1%. ICBC, the country’s largest lender, gained 0.7%.
Heavyweight mobile carrier, China Mobile retreated 2.4%, while China Unicom was 1.81.8% weaker.
State controlled Sino Land slumped 2.9%, while Henderson Land shed 2.1%.
The rather descriptively named, China High Speed Transmission Equipment Group Co, put on 8.7% yesterday. Also Shanghai Electric Group Co, added 7%. Both stocks gained on speculation the Chinese would seek to limit carbon emissions, sending alternative energy stocks higher.
Among oil plays, Cnooc rose 0.3% and PetroChina gained 0.7%.
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