Most Stocks Decline, the Dow Manages a Gain on Blue Chip Strength. Dow Leaders: BA, MMM, DD, MRK, and HPQ

Published on Thursday, 18 March 2010 18:19 Written by Christopher Lynn

New York, March 18^th (TradersHuddle.com) – Most stocks declined, as a tame inflation report, economic data and renewed Greece concerns helped the Dollar higher. Industrials buoyed by economic data, propelled the Dow Jones Industrial Average to its eight straight gain and the highest close in almost 18 months.

The Dow Jones Industrial Average climbed 45.50 points, or 0.42%. The S&P 500 index slid less than 1 point, or 0.03%, while the NASDAQ added 2.19 points or 0.09%.

The market opened higher as the consumer price index showed no pricing pressures and jobless claims fell last week, as the Labor Department report on weekly jobless claims came in line with expectations. In addition, earnings reports from Federal Express (NYSE:FDX) and Nike (NYSE:NKE), helped market sentiment.

Select buying in industrials blue chips helped the Dow Jones Industrial, while the broad market churned as energy and financials were a drag on the market.

In other economic news, the Conference Board released its index of leading economic indicators (LEI) shortly after the start of trading. LEI rose, as expected, 0.1% in February. And the Philadelphia Fed index rose more than expected to 18.9 in March from 17.6 in February.

Shares of Boeing (NYSE:BA), the 2^nd largest aircraft maker in the world, jumped 2.15% to $70.87, closing at their highest level since June 2008 and posting the biggest gain in the Dow Jones Industrial Average after a bullish note from Bernstein Research said the company's 787 program appears to be making substantial progress.

3M (NYSE:MMM) and Dupont (NYSE:DD), were the 2^nd and 3^rd best Dow components respectively after encouraging economic data, especially from the Philadelphia Fed index boosted industrial stocks on prospects of higher demand. Shares of 3M climbed 1.81% to $83.67. Dupont’s shares added 1.59% to $37.07, posting a new 52-week high at $37.85.

The fourth best gain in the blue chip index was Merck (NYSE:MRK). The pharmaceutical company shares gained 0.97% to $38.45. Drug companies received some good news from the Democrats in Congress as the new provisions published by the House with the pharmaceutical industry largely keeping its $80 billion agreement to provide savings and rebates, and discarding an earlier provision that would have extended a hospital drug discount program.

The fifth best Dow component was Hewlett Packard (NYSE:HPQ), as shares of the maker of printers and personal computers, advanced 0.96% to $52.73. The company reached a substantial resolution o f disputes related to its claim that inkjet ink cartridges imported and sold by 11 companies infringed on the printer maker patents.