Stock Market News for January 06, 2010 - Market News
Mixed economic data and a rising dollar pressured stocks Tuesday, sending major indexes off their multi-month highs, but markets regained their footing late in the session helped by a rally in financial and banking shares. Sentiments on the Street drifted between hopes and concerns as yesterday’s upbeat manufacturing reports in China and the U.S. were offset by a report that showed a sharp drop in pending home sales in November.
Investors looking for signs to keep the momentum going found little comfort in the dollar’s zigzag moves. A strengthening dollar hurts commodities and shares of commodities producers. Nevertheless, strength in financial shares such as JP Morgan Chase (NYSE:JPM) and Capital One Financial (NYSE:COF) helped buoy the sentiments towards the end.
The Dow Jones industrial average closed down 12 points, or 0.1%, at 10,572.02. The broader Standard & Poor’s 500-stock index rose 3.53 points, or 0.3%, to 1,136.52, its highest close in more than 15 months. The Nasdaq edged up 0.29 points, or about 0.1%, to 2,308.71. Market breadth was mixed. On the New York Stock Exchange, advancing shares beat those that declined in price by a three-to-two margin on volume of 1.2 billion shares.
Although January sees renewed enthusiasm in markets as individual investors to pension funds reorganize their holdings as they form new investment strategies for the year, uncertainty over key economic reports due out this week has so far kept buyers on toes.
Resource stocks remained strong, with oil and gas shares adding 0.9% and basic material stocks rising 0.8%, as improving economic data gave further credence to self-sustaining economic growth worldwide. Crude prices added 26 cents to their prior day’s tally, ending the day at $81.77, and gold closed up 40 cents at $1,119.
The greenback rose 0.3% against a basket of currencies on its safe haven appeal. Treasuries gained with the 10-year finishing up 15/32 as its yield dropped to 3.765%, easing off last week's seven-month highs.
Shares in Ford (NYSE:F) jumped 6.6% after the company said December sales rose 33% from a year ago, and 50% from the prior month. Total US vehicle sales plunged to their lowest in 27 years at 10.4 million units. Analysts expect 2010 US sales to reach 11-12.5 million vehicles.
At 2:00 PM ET the Fed releases its monthly FOMC policy meeting minutes, likely to be scrutinized for the Fed’s take on economic growth as well as its aid intentions and timing matrix.
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