Monday US Market Wrap

by: Between the Hedges

From Between the Hedges:

S&P 500 1,262.86 -.33%
DJIA 10,892.32 -.24%
NASDAQ 2,239.81 -.98%
Russell 2000 710.53 -.92%
S&P Barra Growth 599.64 -.35%
S&P Barra Value 659.44 -.31%
Morgan Stanley Consumer 592.52 -.17%
Morgan Stanley Cyclical 778.79 -.48%
Morgan Stanley Technology 528.16 -.68%
Transports 4,298.33 -.55%
Utilities 403.97 -.27%
Put/Call 1.01 +48.53%
NYSE Arms 1.0 -11.56%
Volatility(VIX) 13.35 +3.73%
ISE Sentiment 173.00 -7.98%
US Dollar 90.57 +.02%
CRB 327.57 -1.22%

Futures Spot Prices
Crude Oil 61.21 -.07%
Unleaded Gasoline 143.89 +.54%
Natural Gas 7.28 +.48%
Heating Oil 164.04 +.11%
Gold 542.50 +.07%
Base Metals 165.76 -.95%
Copper 222.90 -.22%
10-year US Treasury Yield 4.57% -.13%

Leading Sectors
Disk Drives +.47%
Gaming +.14%
REITs +.13%

Lagging Sectors
Gold & Silver -2.57%
Steel -2.66%
Coal -2.67%

Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Goldman Sachs:
- Reiterated Outperform on (NYSE:KRG) and (NYSE:BLK).
- Reiterated Underperform on (NYSE:HCC).

Afternoon/Evening Headlines
- US economic growth will be robust for several years and inflation will remain tame, fueling an expansion that will keep unemployment low and foreign investment flowing to the world’s largest economy.
- Discover Financial Services will for the first time offer a debit card to banks that previously issued only cards from Visa and Mastercard.
- Zinc fell to a four-week low, leading a decline in base metals such as lead and tin.
- The average US pump price for gas fell for a second week, dropping 5.8 cents to $2.284/gallon.
- Crude oil and heating oil fell to six-week lows on speculation that heating-fuel supplies are sufficient to meet demand after a storm dropped record snowfall on NY. Unleaded gas futures dropped to the lowest level since Nov.
- 3M Co.(NYSE:MMM) raised its dividend 9.5% and said it plans to buy back as much as $2 billion of its own shares.

Nikkei English News:
- Sanyo Electric and Finland’s Nokia Corp.(NYSE:NOK) are planning a joint venture in the US, which would be based in San Diego, to make cellular telephones.

BOTTOM LINE: The tone of the market was negative today as the advance/decline line finished lower, most sectors fell and volume was below average. Measures of investor anxiety were higher into the close. Overall, today's market action was negative. However, it is a positive that the major averages stabilized even as commodity prices headed even lower. As well, volume was below average on today's pullback and the NYSE Arms was elevated throughout the day. Considering it is only February and most stocks are higher for the year, sentiment seems to have turned too bearish.