Barchart Stock Market Wrap – March 11, 2009

On the day that Ponzi scheme financier Bernie Madoff went to jail, the stock market extended its gains and the Dow Jones Industrials climbed back over the 7,000 level.

Early in the day conflicting economic reports led to a mixed opening. Retail Sales came in better than expected, showing only a -0.1% decline from January’s surprisingly positive gain of 1.8%. But the Initial Claims for Unemployment report was worse than expected, showing a gain of 9,000 to 654,000.

The jolt that sparked today’s rally was the news that General Electric (GE) rating was cut from AAA status, but the cut was not as deep as expected. Add to that remarks from Bank of America’s (BAC) chief that he expects the company to be profitable for the entire year and the financials again led the rally. GE stock closed the day up 13% while BAC was up 19%

The Dow Jones Industrials closed up 240 points to close at 7,170 for a gain of 3.5% today. The S&P 500 Index was also higher, closing up 29 points for a gain of 4%.

April Comex gold futures extended their recent gains by $16.5 today to close at $927.2.

The spot April crude oil futures rallied $4.47 to close at $46.80 on hopes that this weekend’s OPEC meeting will result in an agreement to further cut production in an effort to support prices.

The June Dollar Index fell 54 points on a belief that the financial crisis may be easing and thus reducing the need for safe haven buying.

Reports Due Tomorrow:

8:30 am – Department of Commerce International Trade Balance report for January  (expected at a deficit of $38.2 billion, down from December’s $39.9 billion).

Market Momentum: There were 2,786 advancing issues on the NYSE, with 358 declining issues. On the NASDAQ, there were 2,208 advancing issues with 579 declining.

New 52-week Highs: There were 16 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 127 new 52-week lows on the NYSE and NASDAQ.