March 5, 2013Despite downbeat Chinese economic data and lingering sequestration problem, U.S. stocks continued their winning streak as Fed's Yellen said the Fed will maintain to purchase mortgage-backed securities to support the economy. The
Dow rose 38 points, closing 37 points shy of its record high close in 2007, while the
S&P 500 and the
NASDAQ advanced 0.45 percent and 0.39 percent, respectively.
Actually,
stocks tumbled early in the trading day as China’s services industries expanded last month at the slowest pace since September. The non-manufacturing Purchasing Managers' Index retreated to 54.5 in February from 56.2 in January, dampening global market mood. Meanwhile, Chinese regulators restricted lending rules to hinder housing boom, raising the rates and imposing new taxes. However, investors continued to buy stocks as Fed's Yellen remarked that the Fed will continue its dovish stance on monetary policy, restoring market confidence on the equities.
On the corporate front,
Google Inc. edged up 1.9 percent to a record, while
Apple Inc. sank 2.4 percent to its lowest level in more than a year.
Delta Air Lines Inc. rallied 5.6 percent to $15.65.
Caterpillar Inc. slumped 1.8 percent to $89.75 for the largest decline in the Dow.
The Stoxx Europe 600 Index fell less than 0.1 percent to 288.89 at the close of trading as utility equities offset downbeat Chinese data and weaker HSBC results.
The common currency was little changed against the dollar as equities ended on mixed note and Italy could renew elections in the face of ongoing uncertainty, spurring some investors to liquidate long positions on the euro ahead of releasing of fourth quarter growth rate in the euro zone.
Weaker Chinese service industries data and stronger dollar hit oil prices in the markets. Crude oil for April lost 56 cents, or 0.6%, to settle at $90.12 a barrel on the New York Mercantile Exchange, the lowest level for a front-month contract since Dec. 24.
Gold for delivery in April added 10 cents to settled at $1,572.40 an ounce on the Comex division of the New York Mercantile Exchange after three day decline as investors snapped up precious metal at cheaper levels despite strong dollar.
Today, we will focus on
ISM Non-Manufacturing Index and inconclusive debates on sequester ahead of important ADP Employment Report, Factory Orders and Beige Book due tomorrow.
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