Barchart Stock Market Wrap – March 4, 2009

Rumors that China may increase its stimulus plan to rebuild infrastructure by more than $585 billion sparked a rally in commodities and the US stock market today. Industrial metals and crude oil were all sharply higher as a result.

Bargain hunters came back into the US stock market for the first time in five trading sessions as optimism that the Chinese move would help to lead the world out of the recession.

The Dow Jones Industrials closed up 150 points to close at 6,875 for a gain of 2.2% today. The S&P 500 Index was also higher, closing up 17 points for a gain of 2.4%.

April Comex gold futures fell slightly, by $5.4 to close at $908.2 on reduced safe haven buying.

The spot April crude oil futures gained 9% to close at $45.21 up $3.56 on the Chinese stimulus speculation and a US energy department inventory report that showed that crude oil stocks in the US declined for only the 2nd time in the last ten weeks.
 

The March Dollar Index was down by 50 points on reduced safe-haven buying.

Reports Due Tomorrow:

8:30 am – Initial Claims for Unemployment for week ended 2/28 (Compared to 639,000 in the previous week).

10:00 am – Department of Commerce Factory Orders for January (expected -2.1% from -3.9% in December).

Market Momentum: There were 2,464 advancing issues on the NYSE, with 672 declining issues. On the NASDAQ, there were 1,911 advancing issues with 867 declining.

New 52-week Highs: There were 4 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 483 new 52-week lows on the NYSE and NASDAQ.