Barchart Stock Market Wrap – February 12, 2009

Despite some rare good news on the economy today, the markets were on the defensive for most of the day. Early this morning the Commerce Department reported that retail sales rose unexpectedly by 1% in January, ending a six month skid. The Labor Department reported that initial claims for unemployment insurance fell 8,000 to 623,000. Analysts had expected an increase in initial claims.

Still, for most of the day the Dow Jones Industrials were in triple digit losses, reflecting renewed skepticism that the recently agreed to stimulus plan would actually do much of value, despite its high cost. Late in the day rumors that the Obama administration was working on a plan to subside ‘at risk’ mortgages gave a lift to the whole market, especially the hard-hit banking and builders sectors.  

The Dow Jones Industrials closed down 7 points to close at 7,933 for a loss of 0.1% today. The S&P 500 Index was higher, closing up 1 point for a gain of 0.2%.

April Comex gold futures briefly traded above $950 today, before closing just below that level, at $948.1, up $3.6.

The spot March crude oil futures fell $1.64 per barrel on concerns regarding building inventories. The market believes that any cut in production will be more than offset by a drop in demand, increasing inventories.

The March Dollar Index was up 32 points on skepticism that the Treasury Department’s bank bailout plan would be insufficient to stabilize the problem.

Reports Due Tomorrow:

No significant reports are expected tomorrow.

Market Momentum: There were 1,388 advancing issues on the NYSE, with 1,667 declining issues. On the NASDAQ, there were 1,298 advancing issues with 1,375 declining.

New 52-week Highs: There were 12 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 186 new 52-week lows on the NYSE and NASDAQ.