Blue Chips Linger in the Red for '09

Blue Chips Linger in the Red for '09
Dow Industrials Come Up Short in Push to Erase Year-to-Date Losses

(Source Wall Street Journal)
Blue chips came tantalizingly close to turning positive for the year on Friday, but ultimately fell short amid volatile trading after a mixed employment report.

The Dow Jones Industrial Average gained 12.89 points, or 0.2%, to 8763.13, leaving the 30-stock benchmark down just 0.2% for 2009. Boeing shares leapt 4% and Hewlett-Packard rose 3.5%, but more Dow components fell than rose. DuPont, which suffered an analyst downgrade, fell 6%, and Merck, which said it's shelving plans to seek approval for a heart-failure drug this year, sank 1.9%.
The S&P 500-stock index slipped 2.37 points, or 0.3%, to 940.09. Its energy and basic-materials sectors were weak, tumbling 0.8% and 1.4%, respectively. The broad stock measure is up 4.1% for the year to date.

For the week, the Dow jumped 3.1%. It has gained in 11 of the last 13 weeks and gained 32% in that span -- the best 13-week period since November 1982, when it soared 34%. The S&P 500 rose 2.3% this week. It also has risen in 11 of the last 13 weeks, and climbed 38% during that stretch.

Energy stocks played a major role in stocks' gains this week, as crude-oil futures rose 3.2% on the week. But crude pulled back somewhat on Friday, settling down 37 cents at $68.44 a barrel in New York and throwing a little cold water on stocks.

"I think it's a little premature to get excited about the run in commodities as it's kind of a relief rally," said Stephen Lieber, chief investment officer for Alpine Dynamic Balance Fund. "There are people hopped up on the notion China and emerging markets will reinflate the world economy."

The Nasdaq Composite Index slipped 0.60 point, or 0.03%, to 1849.42. It has climbed 17% this year, and was up 4.2% this week. It has risen in 12 of the last 13 weeks and jumped 43% in that time. The Nasdaq has surged 46% since it hit a six-and-a-half year closing low of 1268.64 hit on March 9. Read Article... http://online.wsj.com/article/SB124419863671788589.html