Barchart Stock Market Wrap – February 19, 2009

The Dow Jones broke through critical support at the November 20th lows today and closed at 7,466, the lowest in six years. The November low for the Dow Industrials had been 7,552. The S&P was also lower but has not yet set new lows.

The market worried that the stimulus package recently signed into law would prove too little too late to resolve the recession and a Labor Department report on Producer Prices unexpectedly rose 0.8% in January, indicating that inflation is a very real risk. Even after stripping out the effect of energy prices, core prices rose 0.4%, much more than expectation.

The market shrugged off a surprisingly bulling rise in the Conference Board’s Leading Economic Indicators report that rose surprisingly 0.4% in January.

The Dow Jones Industrials closed down 90 points to close at 7,466 for a loss of 1.2% today. The S&P 500 Index was also lower, closing down 10 points for a loss of 1.2%.

April Comex gold futures were little changed, closing down $3.6.
 

The spot March crude oil futures soared $4.40 per barrel on news that the Energy Departments weekly inventory report showed a totally unexpected drop of 200,000 barrels to 350.6 million.
 

The March Dollar Index was fell 49 points on the increase in Producer Prices and fear of return to inflation.
 

Reports Due Tomorrow:

8:30 am - Department of Labor Consumer Price Index for January (expected at 0.3% up from December’s -0.7%)

Market Momentum: There were 828 advancing issues on the NYSE, with 2,254 declining issues. On the NASDAQ, there were 877 advancing issues with 1,825 declining.

New 52-week Highs: There were 10 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 449 new 52-week lows on the NYSE and NASDAQ.