Barchart Stock Market Wrap – March 9, 2009

The stock market drifted lower today on a lack of bullish reasons not to. Warren Buffett said that the economy had ‘Fallen off a cliff’ and warned that the government’s efforts to fight the current recession were highly inflationary in the long term.

Even the big news that drug maker Merck (MRK) wants to buy competitor Schering – Plough (SGP) for $41 billion didn’t lift the gloom on Wall Street.

With few government or corporate earnings reports due for release this week, the market remains likely to take its tune from Washington.

The Dow Jones Industrials closed down 80 points to close at 6,547 for a loss of 1.2% today. The S&P 500 Index was also lower, closing down 7 points for a loss of 1%.

April Comex gold futures fell $20.2 to close at $922.5 on technical selling and strength in the US dollar.
 

The spot April crude oil futures gained $1.63 on speculation that OPEC, which meets in Vienna on Sunday might announce further production cuts to support the price.
 

The March Dollar Index was gained 63 points to close at 89.18 on safe haven buying and a growing awareness that the US economy is in better condition when compared to the Euro-zone countries and Japan.

Reports Due Tomorrow:

10:00 am Department of Commerce Wholesale Trade for January (expected at -1% down from -1.4% in December).

Market Momentum: There were 878 advancing issues on the NYSE, with 2,239 declining issues. On the NASDAQ, there were 764 advancing issues with 2,004 declining.

New 52-week Highs: There were 5 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 894 new 52-week lows on the NYSE and NASDAQ.