Stock Market News for April 1, 2010 - Market News
US stocks ended the first quarter on a moderate note after a disappointing report on jobs worried investors, reminding them of the fragility of the economic recovery.
All three indexes ended lower but managed to record gains for the quarter. The Dow average, in a remarkable feat, ended higher for the fourth successive quarter. The average gained 4.1% during this quarter. The tech-heavy Nasdaq ended the three-month period with gains of 7.1% while the S&P 500 advanced 5.9% during this period.
On Wednesday, the blue-chip Dow average lost 50 points as its technology components showed weakness. The NASDAQ fell 0.5%, weighed down by weakness in its technology shares, and closed the day at 2,398. The S&P500, hurt by a broad weakness in its industry sector components, fell 0.3% for a 1,169 finish.
A weak US dollar sent oil and gas shares up 0.5%. Oil prices advanced $1.39, or 1.7%, to close at their highest level in almost three months even as the Department of Energy painted a disappointing supply/demand picture. Crude inventories rose 2.9 million barrels, ahead of consensus estimates of 2.5 million barrels. Gasoline stockpiles also showed an unexpected rise to 300,000.
Higher energy prices helped propel oil and gas shares, but consumer-related shares retreated on prospects for higher prices. Consumer goods declined 0.7% and consumer service sector shares were down 0.6%. Industrial shares dropped 0.6% on weaker-than-expected manufacturing data. Concerns over upcoming tech company earnings reports sent technology shares down 0.6%.
Energy shares also moved higher on news the Obama administration plans to propose allowing offshore oil and natural gas exploration in areas off the Virginia coast and eastern parts of the Gulf of Mexico. Transocean (NYSE:RIG) shares jumped 3.9% and Diamond Offshore Drilling (NYSE:DO) gained 3.4% on the news.
Although Research in Motion’s (NASDAQ:RIMM) disappointing earnings report after the close of markets Wednesday caused some worries, this morning’s futures suggest positive sentiment is building, helped by hopes of global economic recovery and expectations for a strong NFP read tomorrow. China manufacturing data came in ahead of estimates with its PMI report showing manufacturing activity grew the most in the index' six-year history.
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