Stocks Fell, Snapping The Dow’s Winning Streak. Dow Laggards: MMM, PFE, AXP, BAC, and WMT

Published on Friday, 19 March 2010 18:50 Written by Christopher Lynn

New York, March 19^th (TradersHuddle.com) – Stocks fell, snapping an eight-day winning streak for the Dow Jones Industrial Average. Uncertainty over health and financial reforms and a stronger Dollar spurred from fresh round of worries about Greece financial problems pushed investors to take a step back.

The market opened lower as overseas concerns over European financial aid to debt stricken Greece, along with an unexpected interest rate increase from India’s central bank pushed the greenback higher as concerns over sovereign debt and withdrawal of stimulus measures will hamper global growth. At play during the session was the constant debate out of Washington regarding the uncertainty of the health and financial reform bills. The end of the session saw some increased volatility, as it was quadruple witching day, the expiration of four key futures and options contracts.

On another sign of an improving economy and the consumer recovering, the Wall Street Journal reported that U.S. car sales for March are accelerating past analyst expectations, with even Toyota Motors (NYSE:TM) showing increases, due to steep sales incentives.

The energy and materials industries in the S&P 500 fell more than 0.9% as the Dollar strengthened, reducing the appeal of commodities as an alternative investment. Financial shares also were weak after Goldman Sachs said it was cutting estimates on banks and brokers with ties to the capital markets by 15 percent following February results. On the flip side health-care had the biggest gain in the S&P 500 among 24 industries.

22 of 30 Dow components posted declines, with shares of 3M (NYSE:MMM), the maker of Post-It notes and respirators, fell 2.04% to $81.96, giving back yesterday’s gains and posting the biggest percentage decline in the blue chip index.

Pfizer (NYSE:PFE), the largest pharmaceutical company in the world and maker of Viagra, posted the second biggest percentage drop in the Dow Jones Industrial Average, as shares dropped 1.86% to $16.91. Investors and analysts speculated that after losing the purchase of Ratiopharm to Teva, the company would have to pay a hefty price if they pursue acquiring German generic producer Stada.

The third worst Dow component was American Express (NYSE:AXP), the card issuer and Travel Company, fell 1.63% to $40.33. Shares fell, as overall financial shares were weaker on the Goldman downgrade in the sector.

The fourth biggest decline in the blue chip index was Bank of America (NYSE:BAC). The largest U.S. lender shares lost 1.52% to $16.82. Goldman cut estimates by 15 percent in the sector, however the firm noted that they would prefer Bank of America and JP Morgan Chase over Morgan Stanley and Citigroup.

The fifth worst Dow component was Wal-Mart Stores (NYSE:WMT), as shares of the largest retailer in the world, retreated 1.07% to $55.34. The shares were weaker on reports that the retailer will be increasing grocery promotions and slashing prices.