The SPX and COMP surrendered trendline support for the first time since March 18
Stocks powered higher at the opening bell this morning, with the Street initially celebrating a round of merger mania. More specifically, Endo Pharmaceuticals struck a deal to buy American Medical System, while Level 3 Communications agreed to acquire Global Crossing Ltd. -- both of which sparked optimism about the collective corporate pocketbook, and helped to offset disappointment in NYSE Euronext's rejection of a buyout bid from its peers.
However, in the back of every trader's mind was an earnings countdown of sorts, with Alcoa's unofficial "season opener" looming large after the closing bell. Against this cautious backdrop -- and with help from black gold's retreat -- the major market indexes chipped away at their lead as the session progressed, with only the Dow Jones Industrial Average (DJIA) eking out a gain by the close.
The Dow Jones Industrial Average (DJIA – 12,381.11) was up more than 60 points at its intraday peak, but eventually whittled its gain to a mere 1.06 points, or 0.01%. Nineteen of the Dow's 30 blue chips ended higher, with Travelers Companies pacing the advancers with a 1.4% gain, and Chevron leading the laggards with a loss of 1.7%.
On the other hand, the S&P 500 Index (SPX – 1,324.46) wasn't as fortunate as its blue-chip comrade, ending a wishy-washy session with a loss of 3.7 points, or 0.3%.
Crude futures backpedaled from 30-month-high territory today, thanks to speculation of a potential cease-fire in Libya. Furthermore, the International Monetary Fund (IMF) said global economic growth will slow to 4.4% in 2011, while Goldman Sachs highlighted "nascent signs of oil demand destruction," both of which weighed on black gold.
Against this backdrop, May-dated crude oil futures gave back $3.60, or 3.19%, to end at $109.59 per barrel. Earlier in the session, the front-month contract tagged a multi-year high of $113.46 per barrel.
HAPPY TRADING & GOODLUCK2ALL
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