U.S. Markets Rally Late On Financials, Finish Mixed
March 15, 2010 at 1:24 PM by AHN · Leave a Comment
New York, NY, United States (AHN) – Stocks languished in negative territory most of the session as investors took profits after the recent rally. However, a late push in financials led by AIG helped markets finish relatively flat.
Shares of American International Group (NYSE: AIG) rallied in late Monday trading to erase early losses, setting off strength in the sector, after reports surfaced that Bruce Berkowitz purchased a large stake in the company. Berkowitz was named Morningstar Inc.’s domestic stock mutual fund manager of the decade recently.
The Dow Jones Industrial average added 18 points or 0.2 percent on the session. 18 of 30 Dow components advanced on the day.
Wal-Mart was the strongest Dow player, adding 2.8 percent after Citigroup upgraded the retail giant’s stock to a buy.
The S&P 500 finished relatively flat at 1,150 as it continues to bounce along the 2010 high. Though financials helped rally the index late, the sector still finished 0.1 percent lower.
Consumer staples, up 0.8 percent posted the best gain. PepsiCo was a leader in the group, up 1.6 percent after raising its dividend and issuing a stock repurchase plan.
The Nasdaq Composite ended 5 points lower or 0.2 percent. Big-cap tech, which has led the recent rally sold off Monday. Shares of Google slid 2.8 percent after stating it will likely exit China due to regulations.
Crude oil fell for a second straight day, finishing below the $80 mark, down 1.8 percent at $79.76 a barrel.
In economic news, Federal Reserve reported that industrial production grew 0.1 percent in February, which topped expectations as economists anticipated no growth in the month. Production has increased eight straight months as manufacturing continues to firm in the U.S.
All eyes will be on the Federal Open Market Committee Tuesday as a decision on interest rates is due out at 2:15 p.m. ET.
