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Stock Market News for March 4, 2010 - Market News

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Stocks gave up early gains and closed the day almost unchanged as President Obama’s call for a healthcare overhaul legislation “in the next few weeks" weakened stocks from the sector and offset enthusiasm that followed a better-than-expected jobs report and an upbeat report on service industries.

The Dow average managed to erase its losses for the second time in as many days, but failed to hold on to those gains and ended the session marginally lower.  The tech-heavy Nasdaq and the broader S&P 500 index ended the day little changed.  On the New York Stock Exchange, advancing shares beat those that declined in price by an eight-to-seven margin on volume of 950 million shares. 

Healthcare stocks also suffered after Medivation Inc. (NASDAQ:MDVN) said it experimental Alzheimer’s disease drug Dimebon failed to meet primary and secondary goals in a late-stage clinical study.  Medivation is co-developing the drug with Pfizer (NYSE:PFE).  

Meanwhile, Greece’s announcement of fiscal austerity measures diminished fears of an impending financial crisis in the euro zone. Nevertheless, traders chose to remain on the sidelines ahead of the Friday’s monthly jobs report and reacted mildly to Fed’s announcement that economic activity picked up modestly in 9 of the 12 Fed districts.

Risk-aversion pushed traders towards commodities, sending crude prices up 1.5% to top $80 at $80.87 per barrel; gold advanced $5.90 to close at $1,143.30; copper prices rose 2.4%; and the broad-based, DJ-UBS commodities index climbed 1.1% to 135.857.  Meanwhile, safe-haven US Treasuries fell in price, with the 10-year off 3/32 as its yield jumped to 3.621%.  The US dollar dropped 0.4% to 80.00 against a basket of currencies as hope grew Greece’s fiscal austerity measures would show desired results, and labor market showed signs of stabilization.

Action was evenly split among the ten S&P500 industry sectors, with basic materials (+0.7%), consumer goods (+0.4%), oil and gas (+0.3%), industrials (+0.3%), and technology stocks (+0.01%) leading on the upside.  Health care and financial stocks closed down 0.3% and 0.1%, respectively, with consumer services off 0.2%, and telecom and utilities down 0.1%.

A number of retailers are scheduled to report their monthly sales numbers.  Although the numbers are expected to reflect dismal weather conditions, pickups in grocery sales and online shopping would somewhat balance the equations. Analysts anticipate a 2.9% gain. Productivity and costs for the fourth quarter is also due, with numbers expected unchanged.

Among the few corporate results expected, Anheuser-Busch (NYSE:BUD) and Marvell Tech (NASDAQ:MRVL) are slated to report. Fed speakers today include St. Louis Fed President Bullard and Chicago Fed President Evans.

Zacks Investment Research

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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