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Friday, March 5, 2010

Wall Street Bulls Reclaim Territories

DJIA Back In The Black For 2010; Crude Oil On The Brakes & Gold Smacked By Currency Hedging
The day ends with the Dow Jones Industrial Average (DJIA) doing something it hasn't done for two days - closing near the highs of the session reversing the afternoon weakness that plagued the previous two sessions. Despite the broad market advance, the sector action remained mixed.

Stocks traded squirrelly trendy today, with equities darting between mild gains and modest losses throughout the session. Wall Street is on edge ahead of Friday's nonfarm payroll report from the Labor Department, which will provide key data on the health of the U.S. jobs market. The day's weekly jobless report was interpreted by some as a positive harbinger, with initial filings for unemployment benefits backpedaling by a steeper-than-forecast 29,000 during the week ended Feb. 27.

The Dow Jones Industrial Average (DJIA – 10,444.14) managed to tack on 47.4 points, or 0.5%, to reclaim a spot north of the 10,400 level. Twenty-three of the Dow's 30 components marched higher, with Walt Disney (DIS) leading the way after an analyst upgrade. Meanwhile, McDonald's (MCD) set the pace for the seven declining blue chips. The Dow is currently poised to notch a weekly finish above both the 10,400 level and its 10-week moving average for only the second time since mid-January -- but with tomorrow's payrolls report on the horizon, this technical victory is far from assured.

The S&P 500 Index (SPX – 1,122.97) gained 4.2 points, or 0.4%, despite a few trips into negative territory. The SPX finally managed to topple the 1,120 area today, following multiple challenges throughout the course of the week. Finally, the Nasdaq Composite (COMP – 2,292.31) added 11.6 points, or 0.5%, after peaking just shy of the 2,300 level on an intraday basis.


Crude futures couldn't continue their positive momentum today, as the front-month contract fell victim to economic anxiety amid the day's mixed bag of data. With the government's monthly payrolls report due out tomorrow morning, traders seemed unwilling to cheer the day's upbeat jobless news, focusing instead on disappointing housing stats. Meanwhile, a rebound in the U.S. dollar provided additional pressure on black gold. By the close, crude oil for April delivery shed 66 cents, or 0.8%, to finish at $80.21 per barrel.

Gold futures followed suit, with the precious metal getting smacked by selling pressure just one day after tapping a six-week high. The popular currency hedge took its cues from the euro, which lost ground versus the U.S. dollar as Greek citizens protested their government's newly proposed austerity measures. April-dated gold futures ended the day sharply lower, shedding $10.10, or 0.9%, to settle at $1,132.60 per ounce.

With these concludes the markets report.
Stay tune with BT >>> we'll keep you abreast with up-to-the-minute developements of the job data & non-farm payroll effects on the market which BT wil pick up tomorrow.
Have a pleasant trading day.

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