Stocks Fluctuate after Mixed Economic Reports. Dow Leaders: GE, CAT, AXP, HD, and MRK

Published on Friday, 12 March 2010 18:27 Written by Christopher Lynn

New York, March 12^th (TradersHuddle.com) – Stocks struggled and ended little change, as drop in consumer confidence overshadowed and increase in retail sales.

The Dow Jones Industrial Average added 12.85 points, or 0.12%. The S&P 500 index slid less than 1 point or 0.02%, while the NASDAQ lost 0.8 points or 0.03%. Market breadth was mixed. On the NYSE, winners topped decliners by a rate of 4 to 3. On the NASDAQ, losers outpaced advancers by a rate of 6 to 5.

For the week, the Dow gained 0.55%, while the S&P 500 index jumped 0.99% and the NASDAQ rallied 1.78%.

The market moved higher after the Commerce Department reported that February retail sales unexpectedly rose 0.3%. Sales excluding autos rose 0.8% in February after rising 0.5% in January. Economists thought sales would rise 0.1%. Stocks lost momentum and fluctuated for much of the trading session after the University of Michigan consumer sentiment index fell to 72.5 in early March, disappointing investors. At the end of the trading session the Dow was able to post a small gain, with the S&P 500 holding the 1,050 level.

On other economic news business inventories were unchanged in February, after falling 0.2% in the previous month. Economists thought inventories would rise 0.1%.

15 of 30 Dow components posted gains, with General Electric (NYSE:GE) leading the gains in the blue chip index as shares jumped 3.40% to $17.04. The maker of aircraft engines traded near its 52-week high as prospects for economic growth improved on signs that the consumer is recovering.

Caterpillar (NYSE:CAT), the largest maker of earth moving equipment in the world, posted the second best gain in the Dow Jones Industrial Average, as shares climbed 2.48% to $60.36. The company was looking to move some manufacturing plants from Asia back to the U.S., signaling that U.S. demand is strong and perhaps taking advantage of a weaker Dollar environment in the future.

American Express (NYSE:AXP), the credit card issuer and travel company, posted the third best gain in the blue chip index, as shares added 1.62% to $40.76. American Express stock price benefited from an unexpected rise in retail sales, which signals that the consumer is not struggling as before.

The fourth best Dow component was Home Depot (NYSE:HD), as the largest U.S. home improvement retailer climbed 1.00% to $32.45. Home Depot moved higher, along with the retail sector as the unexpected climb in February sales indicates a consumer in recovery mode.

Merck (NYSE:MRK), the maker of Zoccor and Singluair, was the fifth best Dow component, as shares jumped 0.76% to $37.16.