Wall Street ended its first quarter on a disappointing note on Wednesday as worries about the job market overshadowed enthusiasm for the energy sector, The New York Times’s Javier C. Hernandez reported.þþBut while stocks finished lower on the day, traders still had reason to cheer: the market finished one of its best first quarters in a decade. The major indexes have risen more than 4 percent in the last three months, continuing a yearlong rally that has lifted the market more than 60 percent.þOn Wednesday, traders were cautious after a report showed that the private sector lost jobs in March. Private payroll losses totaled 23,000 jobs for the month, according to ADP. Analysts had expected a gain of 40,000 jobs.þþThe disappointing data came in advance of the Labor Department’s monthly snapshot of the jobs market on Friday, which analysts believe will show the economy added 184,000 jobs in March.þþA strong report could prompt investors who had kept their money on the sidelines to step back into the market.þþThe stock markets will be closed Friday in observance of Good Friday, though the bond market will be open until noon. A clearer sense of Wall Street’s reaction to the employment report may not come until next week.þþ“You’ve had a tremendous drumbeat leading up to this number,” said Blaze Tankersley, chief market strategist for Bay Crest Partners. “If it’s not as good as we thought, things could get ugly fast.”þþThe focus for investors remains on the labor market, with data on first-time unemployment claims released on Thursday. Some analysts said the ADP report, which typically varies widely from the government’s tally, might be the more accurate measure for March. That is because the Labor Department’s report will include an estimated 100,000 temporary workers hired to help with the 2010 Census.þþIn addition, a bout of bad weather probably worsened the jobs picture in February, positioning March to show large gains.þþStocks swung between losses and gains for much of Wednesday, a pattern that analysts attributed to light trading during a holiday-shortened week.þþ“There’s going to be volatility until we get the payroll numbers out of the way,” said Binky Chadha, chief equity strategist for Deutsche Bank. “Investors are very skeptical and hesitant and cautious about the strength of the recovery.”þþSome analysts believe the market has gotten ahead of itself and is due for a drop — perhaps by as much as 30 percent — before it can move higher.þþOn Wednesday, the Dow Jones industrial average fell 50.79 points, or 0.47 percent, to 10,856.63. It was up 4.11 percent for the quarter. The Dow was held back by a 1.25 percent decline in Boeing, to $72.61.þþThe Standard & Poor’s 500-stock index dropped 3.84 points, or 0.33 percent, to 1,169.43. It rose 4.87 percent in the quarter — its best first-quarter performance in a decade.þþThe Nasdaq composite index declined 12.73 points, or 0.53 percent, to 2,397.96 Wednesday. It was 5.68 percent higher for the quarter.þþThe energy sector rose as President Obama announced details of his plan to open the Atlantic coastline to oil and natural gas drilling.þþOil rallied, at one point hitting its highest level in a year and a half. It ended the day 1.7 percent higher, at $83.76 a barrel. That helped a range of energy companies, including Chevron, which rose 0.7 percent, to $75.83, and Transocean, a large offshore drilling company, which surged 3.86 percent, to $86.38.þþBut the increase in energy prices also raised concern that ballooning fuel costs could hamper economic growth. As oil gained, several consumer-oriented companies fell significantly.þþFord dropped 5.35 percent, to $12.57, after reports that the United Automobile Workers would sell its stock options in the company.þþRite Aid dropped 11.24 percent, to $1.50, after reporting weak sales and profit in the fourth quarter.þþAdding to Wednesday’s cautious tone, a report showed that business activity in Chicago slowed slightly in March. While production and new orders were at relatively robust levels for a sixth consecutive month, the Institute for Supply Management’s barometer registered a lower-than-expected reading.þþBut investors found some hope in signs that orders to the nation’s factories were picking up. Orders rose 0.6 percent in February and inventories climbed 0.5 percent, the Commerce Department said. In addition, the government revised January data to reflect a larger-than-expected increase.þþInterest rates were a little lower. The Treasury’s benchmark 10-year note rose 8/32, to 98 11/32, and the yield fell to 3.83 percent from 3.86 percent late Tuesday. þ
Source: NY Times
