CLOSING BELL

Dow 10856.63  -50.79, Nasdaq 2397.96  -12.73, S&P 1169.43  -3.84 

Stocks fell on disappointment over a discouraging ADP employment report and a worse-than-expected Chicago PMI reading today.

The latest ADP Employment Report showed that -23,000 private payrolls were shed in March economist had expected an addition of +40,000 jobs.  The report had made traders concerned about the official nonfarm payrolls report which economist expect to show an increase of +185,000 to payrolls.  The government's official report is due Friday.

The Chicago PMI for March came in at 58.8, but economists were looking for a reading of 61.0 after a reading of 62.6 in February. This made traders a little nervous about the state of the recovery.

On a positive note, factory orders for February increased +0.6%, which was slightly more than the expected +0.5% increase, while orders for January were revised higher to a + 2.5% increase.

News that the Obama administration proposed allowing offshore oil and natural gas exploration in part of the Gulf of Mexico gave a boost to drillers +2.6%, which allowed the energy sector to gain +0.4%.

Advancing Sectors: Energy +0.4%, Financials +0.2%

Declining Sectors: Consumer Discretionary -0.8%, Tech -0.6%, Industrials -0.6%, Consumer Staples -0.5%, Materials -0.5%, Telecom -0.5%, Utilities -0.3%, Health Care -0.3%

MIDDAY LUNCH

Dow  10892.30  -15.12, Nasdaq 2413.33  +2.64, S&P 1173.54  +0.27 

The market has been able to move upwards from session lows, but has not been able to get to the plus side.

Stocks fell on disappointment over a discouraging ADP employment report and a worse-than-expected Chicago PMI reading. Those reports have overshadowed a weaker dollar, which is down -0.6%.

Te latest ADP Employment Report showed that -23,000 private payrolls were shed in March economist had expected an addition of +40,000 jobs.  The report had made traders concerned about the official nonfarm payrolls report which economist expect to show an increase of +185,000 to payrolls.  The government's official report is due Friday.

News that the Obama administration proposed allowing offshore oil and natural gas exploration in part of the Gulf of Mexico has given a boost to drillers +2.2%, which have sent the energy sector to a +0.7% gain.

MORNING COFFEE

More Flexible Yuan. According to Chinese media reports China may adjust its exchange rate system next month, allowing the yuan a more flexible exchange rate.  A policy change next month could preempt the possibility the U.S. Treasury will label China a "currency manipulator" in a report due April 15.

Blockbuster Falls Again. Blockbuster (BBI) fell more than -10% again in trading yesterday, to close at just $0.25. The drop has followed Monday's announcement that it's not in compliance with NYSE listing requirements regarding minimum market value. Blockbuster, earlier this month the company said it may need to file for bankruptcy.

Obama Says Drill Offshore.  President Obama will propose approval of offshore oil and natural-gas exploration.  The proposal is a direct reversal of what President Obama said as a candidate.  During the elections he strongly opposed the development in a large swath of the eastern Gulf of Mexico.

Upgrades

WellPoint (WLP): BMO Capital Markets raised their rating from Market Perform to Outperform and placed a target price of $75.00 on the company.

Downgrades

Fresh Del Monte (FDP): Sun Trust Robinson Humphrey lowered their rating from But to Neutral.

Coverage Initiated

Cracker Barrel (CBRL): Stifel Nicolaus initiated coverage with a Buy rating and a target price of $55.00.

Helmerich & Payne (HP): Susquehanna Financial initiated coverage with a Positive rating.

CIT Group (CIT): Keefe Bruyette initiated coverage with a Market Perform.

           

·         Futures: Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude +0.6% to $82.86. Gold +0.3% to $1107.90.

·         Asia: Nikkei -0.1% to 11090. Hang Seng -0.6% to 21239. Shanghai -0.6% to 3109. BSE -0.3% to 17528.

·         Europe: London +0.2% to 5684. Paris flat at 3990. Frankfurt +0.2% to 6155.

MIDDAY LUNCH

Dow 10904.32  +8.46, Nasdaq 2404.94  +0.13, S&P 1172.76  -0.46 

The market has been all over the place today going between positive, negative and now positive again.  Part of the problem today is that there are been no real news to give traders the incentive to move the market in either direction.

Tech stocks continue to trade with a modest gain and the sector is currently up +0.3%. Apple (AAPL) 236.02, +3.63 is up on news of a new iPhone that may come to other carriers other than AT&T (T) and the release of the iPad.

Financials remain under pressure today.  The sector is down -0.8%, the next worst performing sectors today are energy -0.2% and health care -0.2%.

MORNING COFFEE

AT&T Loses Exclusive iPhone. Apple (AAPL) will be coming out with new iPhones for summer, The Wall Street Journal reported. The new phones will include a phone based on Qualcomm’s (QCOM) CDMA, the wireless technology used by AT&T’s (T) competitors Verizon Wireless (VZ) Vodafone (VOD) and Sprint (S) possibly ending AT&T’s exclusive agreement.  Some say the new phone "iPhone HD" will have a custom processor, multitasking support and a front-facing camera.

Cisco Get OK For Acquisition. Cisco Systems (CSCO) secured approvals from the EU and the Justice Department clearing its last hurdles in a $3.4 billion acquisition of Norway's Tandberg.

Economic Reports Have Traders Waiting. Wall Street is expecting that consumer confidence grew in March and home price declines continued to ease. 

The consumer confidence report is expected to continue its trend of modest improvement. The Conference Board's Consumer Confidence Index is expected to rise to 50 in March from 46 the prior month according to economist.  Although it would be an improvement a reading of 90 or above indicates that the economy is on solid footing.

Economists predict the Standard & Poor's/Case-Shiller home price index, which measures prices in 20 major metropolitan markets, likely fell -0.8% in January versus a year earlier. That would be an improvement from the -3.1% decline in December.

Upgrades

Apollo Group (APOL): RBC Capital Markets raised their rating from Underperform to Sector Perform.

Coverage Reiterated/Price Target Change

Medtronic (MDT): Stifel Nicolaus reiterated their Buy rating and changed their target price from $48.00 to $51.00.

Netflix (NFLX): FBR Capital reiterated their Outperform rating and changed their target price from $71.00 to $85.00.

·         Futures: S&P +0.19%. 10-yr +0.04%. Euro -0.05% vs. dollar. Crude+0.12% to $82.27. Gold -0.01% to $1111.40.

·         Asia:  Nikkei +1.0% to 11097. Hang Seng +0.65% to 21375. Shanghai +0.15% to 3128. BSE -0.8% to 17565.

·         Europe: London +0.05% to 5713. Paris +0.17% to 4007. Frankfurt +0.16% to 6166.

CLOSING BELL

Dow 10895.86  +45.50, Nasdaq 2404.36  +9.23,S&P 1173.22  +6.63 

The market was able to post gains today dispite financials that lagged the market from the opening bell.

The weaker dollar helped the market today.  The dollar fell -0.4% today against competing currencies on reduced concerned about Greek’s deficit and signed of an economic recovery.

The dollar's decline proved a bust to energy stocks, which led the market today with a +1.8% gain. Oil was higher closing up +2.7% higher to $82.16 per barrel.

Broad-based interest for natural resources helped the CRB Commodity Index post a +2.1% gain, which was its best single-session percentage advance in more than one month.

In economic new today, consumption expenditures in February increased +0.3%, as expected, while core personal consumption expenditures were flat, which missed estimates.  Total and disposable income posted no growth in February.  Economist had expected a +0.1% increase.

MIDDAY LUNCH

Dow 10900.16  +49.80, Nasdaq 2406.78  +11.65,S&P 1172.19  +6.20 

The action in the market today is lackluster with stocks falling off their high; materials stocks +1.3% and energy stocks +1.8% are continuing to support the market.  While, financials stocks are in the red by -0.2%. 

Commodities are higher today with broad-based strength. The CRB Commodity Index is up +2.0%.

The Dollar has fallen against competing currencies today, on reduced concerned about Greek’s deficit and signed of an economic recovery.

Consumer spending in the U.S. rose in February for a fifth straight month and a jobs report on April 2 may show the largest increase in employment in three years. Additionally, the European Union reported an improvement in business and consumer confidence.  There was also news today that China's GDP will spike +12% this quarter.

MORNING COFFEE

World Bank Tax. The U.S. and European governments are discussing plans to tax large banks in order to cover the costs of any future bailouts. Germany and Sweden want to use the money to create a "resolution authority," while France wants to collect the fees after a crisis has already passed.  The U.S. is split, with Congress favoring a resolution authority and the White House leaning towards a post-crisis option.

Geely to Buy Volvo. China's Geely Holding Group has agreed to buy Ford's (F) Volvo unit for $1.8 billion, completing 18 months of negotiations and marking the largest overseas acquisition by a Chinese automaker.

Government to Sell Citi Stake.n The U.S. Treasury Department plans to sell the government’s 27 percent stake in Citicgroup (C) this year, the sale could give the government a $8.2 billion profit based on the current price.

“Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion,” the Treasury said in a statement in Washington today. “The manner, amount and timing of the sales under the plan is dependent upon a number of factors.”

Upgrades

SAP AG (SAP): Broadpoint AmTech raised their rating from Neutral to Buy and placed a target price of $57.00 on the company.

EOG Resources (EOG): RBC Capital Markets raised their rating from Sector Perform to Outperform.

Downgrades

Kellogg (K): BMO Capital Markets lowered their rating from Outperform to Market Perform.

Synovus (SNV): FBR Capital lowered their rating from Market Perform to Underperform and placed a target price of $2.50 on the company.

Coverage Reiterated/Price Target Changed

Netflix (NFLX): Caris & Company reiterated their Above Average rating and raised their target price from $74.00 to $87.50.

Finish Line (FINL): Wedbush reiterated their Outperform rating and raised their target price from $14.50 to $21.00

·         Futures: Dow +0.4%. S&P +0.6%. Nasdaq +0.5%. Crude +0.9% to $80.69. Gold +0.6% to $1111.30.

·         Asia: Nikkei -0.1% to 10986. Hang Seng +0.9% to 21237. Shanghai +2.1% to 3124. BSE +0.4% to 17711.

·         Europe: London -0.3% to 5710. Paris +0.4% to 4004. Frankfurt +0.7% to 6162.

MIDDAY LUNCH

Dow 10843.00  +2.00, Nasdaq 2390.00  -7.00, S&P 1165.00  -1.00 

The market has been declining over the last hour on news that a South Korean military ship may have been attached by North Korea.  Details are limited but news reports say the ship is sinking and that there are deaths. South Korea's YTN TV network said, “the government, which met in emergency session in an underground bunker after the incident, was investigating whether the sinking was due to a torpedo attack by the North." 

Other than the Korea story there has been little news of significance to move the market in either direction today.

There has been some economic news today.  The fourth quarter GDP was revised down -0.3 percentage points to +5.6% in the third estimate. The consensus estimate called for it to remain at +5.9%.  Additionally, the final revision to the March University of Michigan Confidence reading came in better-than-expected, at 73.6.  Economist had expected a reading of only 73.0 

MORNING COFFEE

Eurozone Bials Out Greece. Eurozone countries agreed on a bailout plan for Greece that would be two-thirds funded by government loans and one-third funded by the IMF. European Central Bank President Jean-Claude Trichet called the proposed IMF involvement "very very bad," but later endorsed the plan. The exact amount of the bailout plan wasn't announced, but diplomats have consistently spoken of figures upwards of €20 billion ($27 billion).

AMBAC Open to Bankruptcy. Struggling bond insurer Ambac (ABK) plunged nearly -17% yesterday, following its announcement that the company is open to a prepackaged bankruptcy and is handing over control of troubled mortgage contracts totaling around $35 billion to its state regulator. 

GM to Make Payment. General Motors plans to make another $1.2 billion payment by the end of the month to the U.S. and Canadian governments. GM made a $1.2 billion payment in December, and intends to repay the full $6.7 billion in loans from the U.S. by June.

Accenture (ACN): Reported Q2 2010 EPS of $0.60 missing estimates by -$0.01 on revenue of $5.18 billion.  The company also gaveQ3 revenue guidance in-line and lowered FY10 EPS below consensus.

Oracle (ORCL): Reported Q3 2010 EPS of $0.38, in-line on revenue of $6.4 billion.

Upgrades

Genzyme (GENZ): Leerink Swann upgraded their rating from Market Perform to Outperform.

Coach (COH): JP Morgan upgraded their rating from Neutral to Overweight and raised their target price from $35.00 to $44.00.

Research In Motion (RIMM): JP Morgan upgraded their rating from Neutral to Overweight and raised their target price from $70.00 to $84.00.

Downgrades

Best Buy (BBY): FBR Capital lowered their rating from Market Perform to Underperform and placed a target price of $36.00 on the company.

Unilever PLC (UL):  HSBC Securities lowered their rating from Overweight to Neutral.

Coverage Reiterated/Price Target Changed

Paychex (PAYX): Credit Suisse reiterated their Neutral rating and raised their target price from $26.00 to $28.00.

Oracle (ORCL): Credit Suisse reiterated their Outperform rating and raised their target price from $30.00 to $31.00.

Apple (AAPL): Credit Suisse reiterated their Outperform rating and raised their target price from $275.00 to $300.00.

·         Futures: Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude +0.5% to $80.92. Gold +0.4% to $1097.30.

·         Asia: Nikkei +1.6% to 10996. Hang Seng +1.3% to 21053. Shanghai +1.3% to 3060. BSE +0.5% to 17645.

·         Europe: London -0.3% to 5711. Paris -0.3% to 3986. Frankfurt -0.3% to 6116.