US stocks manage to trim losses

Weak economic reports push stocks lower

US stocks managed to curtail their losses and end with moderate losses on Thursday, 25 February 2010. A surprising jump in jobless claims hammered stocks leaving the major averages with large, consistent losses during mid day trading hours. The claims data renewed worries about the pace of the U.S. economic recovery, while comments by Moody's regarding Greece served as a fresh reminder to investors of Europe's recent struggles.

At the end of the day on Thursday, 25 February 2010, the Dow Jones Industrial Average ended lower by 53.13 points at 10321.03. Nasdaq ended lower by 1.68 points at 2234.22. S&P 500 ended lower by 2.3 points at 1102.94. Dow opened 173 points lower earlier during the day.

The fluctuating dollar dictated market momentum to quite a certain extent today. Stocks managed to curtail losses once the dollar pared its early gains and the euro rose again.

All ten economic sectors ended in the red led by the telecom, utility and financial and sectors.

Coco Cola and JP Morgan were Dow's worst performers. Coca-Cola shares sank 4% after the company agreed to buy most of its largest bottler, Coca-Cola Enterprises Inc. in a deal estimated to be worth between $12 billion and $13 billion. JP Morgan Chase dropped 2% after its investment-banking chief said the bank expects a return on equity of 17% this year, down from 21% last year.

Fed Chairman Bernanke testified on monetary policy and the economy before the Senate Banking Committee this morning, but his comments merely reflected those offered to the House Financial Services Committee yesterday.

Among economic reports expected for the day, the Labor Department said that weekly jobless claims unexpectedly surged last week by 22,000 to 496,000, their highest level in more than three months. Market had expected initial claims to decrease by 13,000.

The four-week average of claims, viewed as a more dependable barometer of the job market than volatile week-to-week readings, shook investors. The four-week average rose by 6,000 to 473,750, up from the previous week's revised average 467,750.

Among other data, durable goods orders failed to temper the negative reaction to the jobless claims numbers. Specifically, durable goods orders increased a stronger-than-expected 3.0% in January, but orders less transportation made a surprise 0.6% decline. Housing prices for December made a surprise 1.6% monthly decline of their own.

In the currency market on Thursday, the dollar strengthened against the euro initially. Currency traders bid the dollar moderately higher in the early going amid reports that Moody's indicated ratings changes for Greece hinge on fiscal reform follow through. The dollar index settled with a 0.2% loss.

Crude prices ended lower on Thursday, 25 February 2010. Prices slipped following dismal economic reports that hit the wires at Wall Street today raising demand concerns for crude in coming month.

On Thursday, crude-oil futures for light sweet crude for April delivery closed at $78.17/barrel (lower by $1.83 or 2.3%). Last week, crude gained 7.7%. In January 2010, crude ended lower by 8.3%. On a year to date basis, crude is lower by 1.5%.

In the commodities market, precious metal prices ended higher for first time in four days on Thursday, 25 February 2010. Yellow metal prices rose today after Greece's financial problems resurfaced once again. On Thursday, gold for April delivery ended at $1,108.5 an ounce, higher by $11.3 (1%) an ounce on the New York Mercantile Exchange. During intra day trading, it fell to a low of $1088.5. On Thursday, March Comex silver futures ended higher by 17 cents (1%) at $15.89 an ounce

Indian ADRs ended mixed on Thursday. Rediff.com was a main gainer soaring 1.5% while Tata Motors skidded 2.3%.

The last quarter latest GDP estimate is the main economic data expected tomorrow. Earning reports will continue to pour in tomorrow.