This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Finds Strength in Numbers

An oversold condition, plus strength in the dollar, plus some better-than-expected economic data helped stocks move higher early Monday, notwithstanding weakness in defense stocks after the Columbia shuttle tragedy. Meanwhile, Treasuries were under pressure, thanks to the strong data and President Bush's budget proposal.

As of 1:49 p.m. EST, the Dow Jones Industrial Average was up 1.11% to 8143.21, although down from its earlier high of 8150.89. The S&P 500 was higher by 0.9% to 863.56, vs. its early best of 864.66, and the Nasdaq Composite was up 0.85% to 1332.10, after having traded as high as 1334.91.

Meanwhile, the price of the benchmark 10-year Treasury note was down 13/32 to 99 28/32, its yield rising to 4.01%. The president's budget would create a record $307 billion deficit in fiscal 2004, raising concerns about the government's need to increase its borrowing via the issuance of Treasury securities.

Stock futures were higher in premarket hours and shares opened with modest strength Monday, piggybacking on strength in the greenback. The dollar was most notably strong vs. the Japanese yen, which fell to a six-week low after Japanese officials talked about "massive" sales in order to weaken the currency. The dollar then received a secondary boost following the 10 a.m. EST release of the January ISM Manufacturing Index and December construction spending data. Of late, the U.S. Dollar Index was up 0.06 to 99.97.

The Institute for Supply Management said its key index of manufacturing conditions came in at 53.9 for January, down from an upwardly revised 55.2 in December but slightly ahead of consensus estimates. The new orders index slid to 59.7 from 69.2 in December but still was relatively high, while the headline index was above 50 for a third-straight month, indicating expansion in the manufacturing sector.

"It is key to remember that strength in manufacturing depends crucially on final demand strength," about which there is still uncertainty after a sub-par fourth quarter, observed Peter Kretzmer, senior economist at Banc of America. "Current strength may derive from better capital spending demand in recent months, but may also simply reflect very low inventories across most industries."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ATK $0.00 0.00%
BA $134.63 0.00%
COSI $1.07 0.00%
CMT $19.07 0.00%
AAPL $111.31 0.00%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs