Stock Market News for March 31, 2011 - Market News

Markets enjoyed an extended stay in the green following reports of new jobs being created in the private-sector. Domestic data was strong enough to counter any concerns arising from the euro-zone debt woes, Libyan unrest and the Japan nuclear crisis. The Dow inched closer to the levels of February 18, which was the highest close since June 5, 2008.

The Dow Jones Industrial Average (DJIA) is en route to its best quarter performance and is within striking distance of reaching its highest levels for 2011. The gains come amidst a host of global tensions and it likely reflects the strength of the domestic economy, which has helped the indices recover from the damages it suffered. The Dow gained 0.6% to close at 12,350.61. The Standard & Poor 500 (S&P 500) and the Nasdaq surged 0.7% each to close at 1,328.26 and 2,776.79, respectively. On the New York Stock Exchange one stock fell for every three that advanced. However, with consolidated volumes at a mere 3.9 billion shares, volumes still remained significantly low suggesting investor’s cautiousness. The CBOE Volatility Index (VIX) dropped 2.5% to 17.71 and also touching its lowest point since February 18, 2011.

On Wednesday, the indices opened in the green and moved higher driven by positive data from Automatic Data Processing.According to the ADP report, 201,000 new jobs were created in the private sector in the month of March. The figure is in line with economist’s expectations. In February, ADP had reported a rise of 208,000 jobs, but it missed the initial estimate of an increase of 217,000. The economy now awaits the report from the Labor Department, which is scheduled for Friday and on several occasions in the past the ADP report has not matched the government’s job data.

Global concerns continued to hover, but investors chose to rely on the positives and pushed indices ahead. Radiation rose to dangerous levels in Japan and no fresh reports of stabilization of the nuclear crisis came in. Euro-zone debt worries seemed to deepen as Portugal inched closer to seeking an international bailout package. Ratings agency Standard & Poor’sfurther highlighted these worries by downgrading the credit rating of Portugal and Greece. S&P downgraded Portugal’s rating by one notch to leave the nation at BBB. In other news, the Bank of Spain estimated the economy will grow at 0.8% this year and at 1.5% next year, lower than the government’s estimates. The central bank also estimated a higher deficit than was previously estimated. Violence in Libya intensified as reports came in of Gaddafi loyalists unleashing attacks against the rebels, driving them to retreat from Ras Lanouf. Meanwhile, the U.K. Foreign & Commonwealth Office reported that the Libyan foreign minister, Moussa Koussa, has planned to step down soon.

The Libyan violence had pushed crude prices to a 2.5 year high last month. However, on Wednesday crude prices for May delivery shed 81 cents and settled at $103.99 per barrel following statements from the Energy Information Administration (EIA). The EIA reported crude oil inventories have risen by 2.95 barrels over the last week. Inventories have increased more than analysts’ estimates of a rise of 2.2 million barrels. Key energy stocks Exxon Mobil Corp. (NYSE:XOM) (1.5%), ConocoPhillips (NYSE:COP) (2.4%), Chevron Corp. (NYSE:CVX) (0.6%), Marathon Oil Corporation (NYSE:MRO) (1.4%), Tesoro Corporation (NYSE:TSO) (2.3%) Chesapeake Energy Corporation (NYSE:CHK) and Valero Energy Corp. (NYSE:VLO) (1.0%) gained 1.5%, 2.4%, 0.6%, 1.4%, 2.3%, 3.1% and 1.0%, respectively.

Shares of Visa, Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA) went higher by 2.8% and 0.8%, respectively after it was reported that there would be a delay in the implementation of new rules for restricting the debit-card fees. The financial sector also drew the momentum from these stocks and other card companies gained, including Discover Financial Services (NYSE:DFS) (2.0%) and American Express Company (NYSE:AXP) which gained 2.0% and 0.6%, respectively.

Among the stocks in focus, AT&T, Inc. (NYSE:T) led the gains for the Dow, jumping 2.2% to settle at $30.71. The telecommunication sector has also provided momentum to the broader market during the month following news that AT&T was to acquire Deutsche Telekom AG’s T-Mobile. Cephalon Inc. (NASDAQ:CEPH) led the gains for the S&P 500 with a massive spike of 28.4% after Canadian drug-maker Valeant Pharmaceuticals International (NYSE:VRX) put up an unsolicited bid to buy it. Shares of Valeant Pharmaceuticals soared 12.8% following the bid.

Stock Market News for March 31, 2011 – Market News

SIGN UP TO NEWSLETTER

Free E-Book

Recent Posts