U.S. EQUITIES FALL AGAIN AS “BAD NEWS BUFFETT” COMMENTS OVERSHADOW GAINS IN OIL, FINANCIALS, AND PHARMACEUTICALS.
U.S. equities fell for another session, as gains in several beaten down sectors were unable to overcome the general headwinds created by negative comments from Warren Buffett and the World Bank.
Buffett’s comments, fueled by one of the worst annual performances of his flagship Berkshire Hathaway fund, suggested that the U.S. Economy “had fallen off a cliff”. These comments gained support from a release by the World Bank which called for continued global recession. The negative outlook for the world’s economy put pressure on a number of technology and industrial companies. Hewlett Packard, Verizon, and DuPont chemical company all posted nearly double digit percentage losses. The overall negative tone of the market overshadowed several bright spots. Schering Plough gained nearly 17% on the announcement that Merck drugs would be buying the pharmaceutical giant for $42 billion. Energy companies posted strong rallies as crude oil rose to its highest levels since January on expectations of OPEC staging another series of production cuts that will accelerate the drawdown of crude oil supply which has been building in the wake of the global slowdown. Bio techs firms gained after President Obama rescinded the previous administrations ban on federal support for stem cell research.
Technically, March Dow futures continue their downward trend, with near term support at 6403. Market may set up for a short term bounce to 6597. If the market is unable to hold above this level, look for a break through 6390, with a target support of 6275.
EQUITY RANGES
OPEN
HIGH
LOW
CLOSE
CHANGE
DJH9 (MARCH DOW)
6530
6699
6512
6528
-146
SPH9 (MARCH S&P)
674.50
695.00
672.00
675.90
-11.90
NDH9 (MAR NASDAQ)
1057.00
1088.00
1039.00
1047.00
-29.50
Prepared by Rich Roscelli & Paul Brittain.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.
