International Markets - US Market back in loss making mode

US Market back in loss making mode

US Market was back at its loss making mode today, Thursday, 06 March, 2008. Financial sector weighed heavily on the sector after a couple of reports hit the market. Mixed economic data also added further negative sentiment. A better than expected retail data failed to make things take a u turn. All ten sectors ended in the red today led by the financials.

The Dow Jones industrial Average ended the day with a loss of 215 points at 12,040. The Nasdaq Composite Index, finished lower by 52 points at 2,220. S&P 500 finished lower by 29 points at 1,304. Twenty-nine out of thirty Dow stocks ended in the red today led by Citigroup and JP Morgan. Wal-Mart was the sole Dow winner today.

Since the very start, sellers took position today after there was news that mortgage delinquencies during the fourth quarter reached their highest level since 1985. Delinquencies were reported at 5.82%, up from the prior reading of 5.59%.

Together with that, there was news that Merrill Lynch was getting out of the subprime business and was laying off almost 650 workers. Merrill Lynch shares hit a 52 week low.

On the other side, better than expected same-store sales reports for February came from key retailers. Wal-Mart and Target both reported better results than forecasters estimated.

Initial jobless claims for the week ended 1 March came in at 351,000. That was below the 360,000 initial claims market was anticipating. Though the results were better than expected, initial claims remain at higher levels than in previous months.

Separately, January pending home sales were flat when compared with the prior month. That was better than expected 1% downturn. Pending home sales in December were revised higher from a 1.5% decline to a 1.2% decline.

Crude prices shot up further today after dollar fell to new lows against the euro and after Energy Department reported a an unexpected drop in crude inventories for last week. Prices had shot up by more than $5 yesterday itself. Crude-oil futures for light sweet crude for April delivery today closed at $105.47/barrel (higher by $0.95/barrel or 0.9%) on the New York Mercantile Exchange. Prices are 74% higher than a year ago. The contract was trading in the intraday range of $105.97 and $99.88 in the volatile session.

Volume on the New York Stock Exchange topped 1.6 billion, and declining stocks outpaced those advancing by more than 4 to 1. On the Nasdaq, 979 million shares were exchanged, and for every stock on the rise, almost five were on the decline.

For tomorrow, February's Employment Report is due. The report will provide the latest in national employment rates, often considered a barometer for economic health. The report will take center stage in tomorrow's action.