Barchart Stock Market Wrap – February 17, 2009
Concerns over a growing global recession drove stock prices lower today, near the November 20th lows.
Despite President Obama’s signing of the $787 billion stimulus package, investors were more concerned about the current manufacturing slump. One sample of how bad things are right now? Chrysler executives told Congress that they will need an additional $2 billion in government aid.
The Dow Jones Industrials closed down 298 points to close at 7,552 for a loss of 3.8% today. The S&P 500 Index was also lower, closing down 38 points for a loss of 4.6%.
April Comex gold futures were sharply higher, by $27.9 on economic woes, easily closing above previous resistance around the $950 area.
The spot March crude oil futures fell $2.65 per barrel on growing economic concerns. Tomorrow’s report on crude oil inventories by the Energy Department is unlikely to help crude oil.
The March Dollar Index rose 114 points on a growing belief that no matter how bad the US economy, the US government has done more to combat the problem than Europe.
Reports Due Tomorrow:
Before the Market Opens – Deere & Company (DE) reports earnings (expected at 63 cents versus 83 cents last year).
Before the Market Opens – Goodyear Tire (GT) reports earnings (expected at loss of 97 cents versus a gain of 49 cents last year).
8:30 am – Department of Commerce Housing Starts for January (expected at an annualized rate of 530,000, down from 550,000 in December).
8:30 am – Department of Commerce International Trade report (Import Prices expected to fall -1.4% versus last month’s -4.2%)
9:15 am – Federal Reserve Industrial Production for January (expected at -1.4% down from -2.0% in December).
10:30 am – Crude Oil Inventories for the week ended 2/13. (Last week stocks were 350.8 million barrels).
Market Momentum : There were 213 advancing issues on the NYSE, with 2,900 declining issues. On the NASDAQ, there were 358 advancing issues with 2,406 declining.
New 52-week Highs : There were 6 issues reaching 52-week highs between the NYSE and NASDAQ
New 52-week Lows : There were 328 new 52-week lows on the NYSE and NASDAQ.
