Barchart Stock Market Wrap – January 8, 2009
Commentary:
It was a mixed day on Wall Street with the Dow Jones Industrials closing lower but the NASDAQ Composite and S&P 500 closed higher. The Dow was under pressure after a poor retail sales report that showed that it was the weakest Christmas shopping season in 40 years. Worst, Wal-Mart (WMT) , which was one of the stronger retailers in 2008 was forced to their Q4 outlook from continuing operations to between 91 and 94 cents from previous guidance of $1.03 - $1.07.
But the market found some support from this week’s new unemployment claims report that showed that new claims fell 24,000 to 467,000 in the week ended January 3. The market had been expecting an increase. This is now the second straight week that new claims have declined.
Additionally, the market took heart when Citgroup (C) agreed to support legislation that would allow judges to change the terms of loans to prevent foreclosures.
The Dow Jones Industrials closed down 27 points to close at 8,743 for a loss of 0.3% today. The S&P 500 Index was higher closing up 3 points or 0.3%.
February Comex gold futures gained $17.0 as the dollar fell today ahead of tomorrow’s monthly unemployment report. Gold and the dollar have been in a war to see which will be the ‘safe haven’ of choice among investors.
The spot February crude oil futures fell 36 cents, after yesterday’s huge loss, on continued worries about burdensome inventory stocks and a slowing economy.
The March Dollar Index was under pressure today and fell 82 points in anticipatory selling ahead of tomorrow mornings monthly unemployment report.
Reports Due Tomorrow:
8:30 am – Unemployment for December (expected at 7% versus 6.7% in November).
Market Momentum: There were 1,916 advancing issues on the NYSE, with 1,202 declining issues. On the NASDAQ, there were 1,644 advancing issues with 1,134 declining.
New 52-week Highs : There were 21 issues reaching 52-week highs between the NYSE and NASDAQ
New 52-week Lows: There were 21 new 52-week lows on the NYSE and NASDAQ.
