The market finished the final session of the week in a mixed fashion. Similar to yesterday, the early gains were given back. There is little news that is driving today’s action. The University of Michigan consumer sentiment index for March was revised to 73.6 from 72.5. The revised number was slightly better than expected. Separately, the final reading for Q4 GDP showed consumer spending was slower at the end of 2009 than previously estimated. For the week, all three major indexes managed to advance around 1%, the fourth straight weekly gain. Next week will be a holiday-shortened week. The focus will be on Friday’s non-farm payrolls report. Currently economists predict a gain of 190K positions in March.  

The market finished the Thursday in a mixed fashion after giving up most of the early gain. Some contributed the late-day decline to uncertainty regarding the Greece rescue plan. However, I think the Greek issue is more likely to be a scapegoat. Investors merely used it as a reason to book some profits. The upcoming earnings season would provide investors more opportunities to do the same. In other economic news, initial jobless claims for the latest week fell more than expected to a seasonally adjusted 442K. It should be noted that much of the drop is due to a change in the method of calculating the jobless claims. Without that change, the drop would be only a few thousands.  

Most major sectors finished the session lower led by basic materials and energy. Both groups were hurt by a strong dollar. The CRB commodity index dipped 0.6%. The US dollar was higher against most major currencies. Treasury yields were mixed. The three-month US LIBOR advanced 1bps to 29 bps. The VIX index rose almost 5%. The market breath was neutral on both NYSE and Nasdaq. The volume was heavier compared to the previous session.

The market retreated on Wednesday following yesterday’s big gain. We had some mixed economic news in today’s session. Durable goods orders for February climbed 0.5% and orders excluding transportation increased 0.9%. The headline number was in-line with expectations while the other was actually better than expected. New home sales for February, however, decreased 2.2% month-over-month to an annualized rate of 308K. It was not only worse than expected but also an all-time low, indicating the housing market remains fragile.

Most major sectors finished the session lower led by telecom and consumer staples. The CRB commodity index dipped 0.8%. The US dollar was higher against most major currencies. Treasury yields were higher. The three-month US LIBOR was unchanged at 28 bps. The VIX index rose almost 7%. The market breath was negative on both NYSE and Nasdaq. The volume was neutral compared to the previous session.

The market advanced strongly on Tuesday with all three major indexes closing at their highest levels for the year. Better than expected housing data was partially responsible for today’s strong gain. Existing home sales for February dipped 0.6% to an annual rate of 5.02 million. Separately, Treasury Secretary Geithner testified before the House Financial Services Committee about housing finance reform. He reiterated that nationalization is not an attractive option. Finally, President Obama signed the controversial Health Care Reform Bill into law in Washington.  

All 10 major sectors finished the session higher basic materials and industrial. The CRB commodity index dipped 0.2%. The US dollar was higher against most major currencies. Treasury yields were higher. The three-month US LIBOR was unchanged at 28 bps. The VIX index dropped 3%. The market breath was positive on both NYSE and Nasdaq. The volume was neutral compared to the previous session.

The market started the first session of the new week in a positive note. The biggest news came from Washington, where the House of Representatives passed healthcare reform last night by a vote of 219 – 212. The news sent a boost to healthcare stocks, especially the hospital sector.  Although the long-term impact of the healthcare reform won’t be seen for years, one uncertainty has been removed for the sector.

Most major sectors finished the session modestly higher. The CRB commodity index dipped 0.1%. The US dollar was lower against most major currencies. Treasury yields were lower. The three-month US LIBOR was unchanged at 28 bps. The VIX index dropped less than 1%. The market breath was positive on both NYSE and Nasdaq. The volume was lighter compared to the previous session.