US markets recovers a bit

Microsoft helps Nasdaq stay steady while other two indices falter little

Stocks at Wall Street ended on a mixed note and with subtle and little losses on Monday, 02 January, 2009. Though there was no such specific catalyst for the market – be it positive or negative, The Dow lingered in the red for the entire day. Economic reports checked in line with expectations, in certain cases, in fact better. The techno logy sector supported the Nasdaq and the same managed to show some steadiness.

The Dow Jones Industrial Average ended lower by 64 points at 7,936, the Nasdaq closed higher by 18 points at 1,494 and the S&P 500 closed lower by 0.45 points at 825. Dow was down by 127 points at session lows.

GE, Boeing, 3M and P&G were the main Dow laggards today. Microsoft supported the Nasdaq today. Half of the major economic sectors sported gains with telecom being the main winner and industrials, the main loser.

General Electric was a primary laggard in the Dow today amid ongoing concerns regarding the health of the company's capital arm.

Among major economic reports for the day, personal spending data showed that consumer spending remained under severe constraint pressed by rising unemployment, tight credit and declining home prices, and swooning asset portfolios. Personal spending in December was down 1%. The data were generally in-line with expectations.

January ISM Manufacturing data came in a better-than-expected 35.6 after coming in at 32.9 in the prior month. The latest reading was expected to hit just 32.5.

In a separate report, construction spending in December fell 1.4%, which was a bit steeper than the 1.2% decline that was widely forecast. Spending was down 1.2% in the prior month.

Retail sector came under pressure today after retailer Macy's indicated it expects earnings for fiscal 2009 to range from $0.40 to $0.50 per share. The company also announced it plans to reduce its quarterly dividend by 68%. Macy's also indicated it plans to eliminate some 7,000 jobs.

On Monday, crude-oil futures for light sweet crude for March delivery closed at $40.08/barrel (lower by $1.6 or 3.8%) on the New York Mercantile Exchange. Earlier during the day, it touched a low of $39.83. Last week, crude prices ended lower by 10%. In January, 2009, crude shed 14%.

At the currency market on Monday, the dollar index, which tracks the dollar against a trade-weighted basket of six major currencies, fell by 0.5%. But the dollar strongly firmed up against the British pound.

The earning reports for tomorrow will feature Dow Chemicals and Merck. Among economic reports, December pending home sales and January auto sales are due tomorrow.