Barchart Stock Market Wrap – February 18, 2009

The market was narrowly mixed today, resting after yesterday’s bloodbath.

In economic news, both Industrial Production and Housing Starts disappointed, with housing starts plunging 16.8% from December to an annualized rate of 466,000 units, far below expectations.

President Obama tried to support the housing market by announcing a $275 billion plan to slow or stop foreclosures while the Federal Reserve cut its 2009 growth targets for the United States. The Fed now expects the US economy to decline between 0.5% and 1.3% in 2009.

The Dow Jones Industrials closed up 3 points to close at 7,555 for a gain of 0% today. The S&P 500 Index was lower, closing down 1 point for a loss of 0.1%.

April Comex gold futures rose again today, by $18.0 on safe harbor buying, given the generally poor economic news.

The spot March crude oil futures fell 36 cents a barrel on fears that tomorrow’s delayed inventory report will again show an increase.

The March Dollar Index was another 55 points higher again on safe harbor buying.

Reports Due Tomorrow:

Before the Market Opens – Sprint Nextel (S) reports earnings (expected at loss of 3 cents versus a gain of 21 cents last year).

8:30 am Department of Labor Producer Price Index for January (expected at 0.2%  versus -1.9% in December).

8:30 am – Initial Claims for Unemployment for week ended 2/14 (Compared to 623,000 in the previous week).

10:00 am – Conference Board’s Leading Indicators for January (expected unchanged after rising 0.3% in December).

Market Momentum: There were 869 advancing issues on the NYSE, with 2,240 declining issues. On the NASDAQ, there were 947 advancing issues with 1,764 declining.

New 52-week Highs: There were 14 issues reaching 52-week highs between the NYSE and NASDAQ.

New 52-week Lows: There were 431 new 52-week lows on the NYSE and NASDAQ.