Stock Market News for March 29, 2010 - Market News

U.S. stocks failed to build on to gains recorded earlier in the session and closed almost flat for a second consecutive day Friday as traders appeared uncertain about the market’s ability to build on to recent advances.  Nevertheless, fears of a looming Greek default dissipated as European Union leaders and the International Monetary Fund agreed to a bailout package for Greece.

The Dow Jones industrial average, up as much as 68 points during the session, pared much of those gains to close up 9.15 points, or 0.1%, at 10,850.36.  The broader Standard & Poor's 500 index added 0.86 points, or 0.1%, to 1,166.59.  The tech-heavy NASDAQ composite index closed down 2.28 points, or 0.1%, to 2,395.13.  On the New York Stock Exchange, advancing shares were narrowly ahead of decliners on volume of 1.025 billion shares.  Treasury prices rose, sending the corresponding yields down.  The yield on the benchmark 10-year Treasury note fell to 3.85% from 3.89% late Thursday.

Nevertheless, markets ended with their fourth weekly increase, with the DJIA up 1.0%, the NASDAQ 0.9% and the S&P500 0.6%.  Easing worries on Greece sent the euro up against the dollar and commodities gained as the greenback declined.  Dollar-traded commodity shares such as Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) were among the Dow average’s biggest gainers.

This morning’s stock futures suggest markets are headed for a higher opening.  A government report says consumer spending increased for the fifth successive month in February, indicating consumers are beginning to open their wallet.  Before the open, the Dow Jones industrial average futures rose 36, or 0.3%, to 10,834. Standard & Poor's 500 index futures rose 5.20, or 0.5%, to 1,168.70, while Nasdaq 100 index futures rose 10.00, or 0.5%, to 1,961.75.

Meanwhile, a string of companies have announced recently that they plan to take charges due to the recently passed healthcare legislation.  However, except for AT&T (NYSE:T), which sees a charge of $1 billion, no other firm expects these charges to take a major chunk off their earnings.  Nevertheless, 3M’s (NYSE:MMM) $90 million, AK Steel’s (NYSE:AKS) $31 million, Caterpillar’s (NYSE:CAT) $100 million, Deere’s (NYSE:DE) $150 million and Valero’s (NYSE:VLO) up to $20 million have contributed to a reality-check on the government's assertion of the bill's costs.

Zacks Investment Research