US stocks end with mild losses

Energy and healthcare sectors weigh on overall market sentiments

US stocks oscillated between red and green territory for most part of the day on Monday, 22 February 2010, but ultimately ended with mild losses. Stocks started the session with a strong gain, but the advance quickly faded as participants reacted negatively to some of the details of President Obama's latest health care reform plan. Weakness in broader market, mainly in energy sector, led stocks decline.

At the end of the day on Monday, 22 February 2010, the Dow Jones Industrial Average ended lower by 18.97 points at 10383.38. Nasdaq ended lower by 1.84 points at 2242.03. S&P 500 ended lower by 1.16 points at 1108.01. Dow opened 6 points higher earlier during the day.

Eight out of ten sectors ended in the red led by the energy, utilities and materials sectors.

Bank of America and JP Morgan Chase were the Dow's best performers followed by Home Depot. Merck, Chevron and Exxon Mobil were the main Dow laggards.

The healthcare sector was a laggard today after the release of the president's health-care proposal, which suggests a tax on high-end health plans be delayed for all workers, not just those in unions, until 2018 and suggested new taxes to help make up for the lost revenue. The plan would cost $950 billion over 10 years. Market reacted negatively to the news but healthcare sector ultimately ended little lower.

Though the stock market's upside moves was limited, downside action in the broader market has also been contained this session. Financials also offered a supportive boon to the broader market. The sector was up as regional banks have been leaders in the sector.

Home Depot gained today after fellow home improvement retailer Lowe's reported a better-than-expected 27% jump in fiscal fourth-quarter earnings as profitability and sales tied to bigger-ticket projects improved.

Among merger related news, Schlumberger was a primary laggard following news that it has agreed to a stock-for-stock merger with Smith International. The stock weighed on the energy sector the most. In other merger and acquisition news, Thermo Fisher Scientific reportedly has made a $6 billion bid for Millipore.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies erased earlier losses and rose marginally against the euro.

Crude prices pared earlier losses and ultimately ended little higher on Monday, 22 February 2010. Prices were volatile, pared earlier losses, and rose following higher gasoline prices. Strikes at Total SA refineries and depots in France boosted prices of refined products. On Monday, crude-oil futures for light sweet crude for March delivery closed at $80.16/barrel (higher by $0.25 or 0.3%). The March contract expired today. On a year to date basis, crude is higher by 1.1%.

Precious metal prices ended lower on Monday, 22 February 2010. Prices slipped in synchronization with US stocks and crude prices. A steady dollar also pressured bullion metal prices. On Monday, gold for April delivery ended at $1,113.1 an ounce, lower by $9 (0.8%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose to a high of $1,131.5. On Monday, March Comex silver futures ended lower by 15 cents (1.2%) at $16.22 an ounce.

Trading volume was light as many traders stayed on the sidelines. Composite turnover in New York Stock Exchange-listed companies hit 3.9 billion shares, well below the daily average so far this year.

Indian ADRs ended mixed on Monday. HDFC Bank was the main loser shedding 0.3%. Rediff.com was a main gainer soaring 2.7%.

Tomorrow, there no economic reports scheduled for the day. Earning reports will continue to pour in.