Stocks at Wall Street end almost flat

Stocks do not react much on a day full of catalysts
US stocks lacked direction for the entire day on Wednesday, 06 January 2010 and ended almost flat. Stocks pared almost all their mid day gains, mainly led by the technology sector. The materials and energy sectors tried to support the market though. Economic reports checked in mixed in nature though did not move market either way. The latest Federal Open Market Committee meeting minutes were released today.
At the end of the day on 06 January, 2010, the Dow Jones Industrial Average ended higher by 1.66 points at 10,573.68. Nasdaq Composite ended lower by 7.62 points at 2301.09. S&P 500 ended higher by 0.62 points at 1137.14. Dow was trading higher by 17 points earlier during the day.
Six of the ten economic sectors ended higher for the day led by materials, energy, and financial sectors. Telecom and technology sectors lagged. Consumer discretionary sector remained almost unchanged.
Blue chips fought the entire day to keep the Dow in positive territory. The broad-based S&P 500 also battled to remain in the green.
Google, Oracle and Microsoft were the main laggards in the technology sector.
According to the latest Federal Open Market Committee meeting minutes, members said that more stimulus might become desirable, but that asset purchases could be scaled back. Officials also expressed a continued concern about a weak labor market.
Among major economic data expected for the day at Wall Street, The ADP employment report in US showed on Wednesday, 06 January, 2010 that private-sector firms in the U.S. eliminated 84,000 jobs in December, the 23rd decline in a row. It was the fewest jobs lost since March 2008. But the figure was more than an estimated 75,000. In November, a revised 145,000 jobs were lost, compared with the 169,000 originally reported.
Separately, The Institute for Supply Management reported in US on Wednesday, 06 January 2010 that the service sectors of the U.S. economy rebounded in December 2009. The ISM non-manufacturing index rose to 50.1% from 48.7% in November. Market was expecting the ISM non-manufacturing index to rise to 51%.
Readings above 50% in the diffusion index indicate that activity at more firms is expanding rather than contracting. The report showed that seven industries reported growth, while nine reported contraction.
Crude prices ended higher at Nymex on Wednesday, 06 January 2010. Prices rose following the cold weather and lower dollar. Price climbed up despite the energy department reporting a build up in crude inventories for last week.
On Wednesday, crude-oil futures for light sweet crude for February delivery closed at $83.18/barrel (higher by $1.41 or 1.7%). During intra day trading it fell to $80.85/barrel. Prices have now risen for ten consecutive sessions and have gained 14.7% in that stretch.
The EIA reported today that U.S. crude inventories rose by 1.3 million barrels in the week ended 1 January, 2010. The report also showed that gasoline inventories increased by 3.7 million barrels. Distillate stockpiles fell 300,000 barrels. The EIA data also showed that net crude imports rose 4.1% to 8.323 million barrels a day. Refiners reduced their production last week, operating at 79.9% of their operable capacity, down from the previous week's 80.3%.
Market was anticipating that weekly inventory report by energy department will show crude and gasoline stockpiles to have dropped by 0.2 million and 0.5 million barrels last week respectively.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.2% following mixed economic data.
Indian ADRs ended mixed today. Dr Reddys and Rediff.com were the main gainers soaring 3.4% and 2.9% respectively. ICICI Bank and Infosys Technologies, each lost 1.5%.
For tomorrow, there are a few economic and earning reports expected. The initial and continuing claim reports are the economic ones expected.