Stock Market News for March 5, 2010 - Market News
Investors welcomed better-than-anticipated retail sales numbers and sent stocks higher at the end of a volatile session, but caution prevailed ahead of the government's monthly employment report. A slew of encouraging economic reports also helped investors’ risk appetites.
The Dow Jones industrial average, meanwhile, inched back into the positive territory for the year, up 47 points, or 0.5%, as a number of its components were upgraded. The broader S&P 500 index rose 4 points or 0.4%. The tech-heavy Nasdaq composite gained 11 points or 0.5%, helped by strength in Google (NASDAQ:GOOG), up 1.7%, Oracle (NASDAQ:ORCL), up 1.1%, and Microsoft (NASDAQ:MSFT), up 0.6%.
Those leading the DJIA higher were Disney (NYSE:DIS), up 2.9%, on a Bank of America (NYSE:BAC) "buy" recommendation, Coca-Cola (NYSE:KO), up 1.0% on a UBS (NYSE:UBS) ratings increase to "buy," and a Boeing (NYSE:BA) increase to "neutral.".
This morning the government's monthly employment report showed fewer jobs were shed in February than expected. Stock futures rose sharply after the report said employers cut 36,000 jobs last month, while the unemployment rate remained unchanged at 9.7%. Dow Jones industrial average futures rose 46, or 0.4%, to 10,477. Standard & Poor's 500 index futures rose 6.50, or 0.6%, to 1,128.90, while Nasdaq 100 index futures rose 9.50, or 0.5%, to 1,869.25.
Only two of the ten S&P 500 industry sectors ended the session in the red: oil and gas, down 0.4%, on strength in the US dollar and a build in crude stockpiles, and health care, down 0.2. Gainers on the S&P 500 included, financials and consumer service sectors, up 0.8%; followed by consumer goods and tech (+0.5%); industrials (+0.3%); telecom (+0.2%); basic materials (+0.1%); and utilities (+0.04%).
Retail sales numbers, meanwhile, pointed towards a slow but steady recovery in works. Retail sales jumped 4% in February, their sixth straight month of gains and best since November of 2007; analysts had projected gains of 2.9%. Abercrombie and Fitch (NYSE:ANF) surprised with a 5% same-store sales jump; its shares surged 14.6%. Wal-Mart (NYSE:WMT), which does not report retail sales numbers, offered investors a 11% dividend hike.
Housing markets, however, did react to the harsh winter weather in the Northeast, as January pending home sales disappointed with a 7.6% fall; analysts had anticipated a 1% gain after December's revised 0.8% increase. Lennar (NYSE:LEN) shares fell 1.4%; Toll Brothers (NYSE:TOL) was off 0.9%; and Pulte Homes (NYSE:PHM) shed 0.6%.
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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