Beaten-down blue chip Citigroup (C) has dragged on the Dow during the past year, but the bailed-out bank is making up for lost time this week. After heading up Tuesday's breakneck rally, Citigroup sparked early gains once again today. Investors reacted enthusiastically as Chairman Richard Parsons asserted, "Citi is actually one of the better capitalized banks in the world." Parsons also brushed aside lingering nationalization worries, saying he has "a lot of confidence" that Citi will remain privately held. The chairman's commentary contributed to early gains, but the equities market wavered today between positive and negative territory. Despite impressive weekly gains, many on Wall Street continue to believe that the bear market isn't dead -- it's just hibernating.
Despite lingering economic anxieties, the Dow Jones Industrial Average (DJIA 7,223.98) finished with a solid gain of nearly 54 points, or 0.8%. Seventeen of the Dow's 30 components closed higher, led by General Motors (GM). Alcoa (AA) paced the day's declining equities, while 3M (MMM) closed flat. Today marks the blue-chip barometer's second consecutive close atop the 7,000 level, and its fourth consecutive finish above its 10-day moving average. For the week, the Dow added 9%.
The S&P 500 Index (SPX 756.55) also ended higher, closing with a gain of about 6 points, or 0.8%. For the week, the SPX added a healthy 10.7%. Meanwhile, the Nasdaq Composite (COMP 1,431.50) joined its peers by settling on positive ground. The COMP added 5.4 points for the session, or 0.4%, and ended the week up 10.6%.
Turning to equities in focus, Berkshire Hathaway was robbed of its coveted "AAA" credit rating by Fitch Ratings ... Dendreon Corporation (DNDN) caught bearish bettors off-guard with its narrower-than-expected quarterly loss ... Despite a strong showing by banking stocks this week, put activity surged today on Goldman Sachs Group (GS) ... Baker Hughes (BHI) dropped after a Credit Suisse downgrade from "outperform" to "neutral" ... Foster Wheeler AG (FWLT) was flooded with call volume after joining Goldman Sachs' "conviction buy" roster ... and today's Quote of the Day comes from Alessandra Stanley of the New York Times, who was one of a chorus of thousands weighing in on last night's confrontation between CNBC's Jim Cramer and Comedy Central's Jon Stewart. With Stewart hurling accusations and Cramer meekly apologizing, Stanley observed that the interview "felt like a Senate subcommittee hearing":
"Mr. Stewart treated his guest like a C.E.O. subpoenaed to testify before Congress -- his point was not to hear Mr. Cramer out, but to act out a cathartic ritual of indignation and castigation."
But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Market Blog coverage of:
And, in case you missed it, Jocelynn Drake turned her Options Spotlight on the shares of Ultra Petroleum (UPL). Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
Oil futures mimicked the roller-coaster action in the equities market today. The Organization of Petroleum Exporting Countries (OPEC) is scheduled to assemble in Vienna this Sunday, and many analysts expect the cartel to issue further output reductions. Ahead of the meeting, Kuwaiti Oil Minister Sheikh Ahmed al-Abdullah al-Sabah told reporters that OPEC's decision would be a difficult one. "We don't want to hurt the international economy, but at the same we don't want to hurt ourselves," he explained. However, Algerian Energy Minister Chakib Khelil believes that another production cut is virtually guaranteed, observing, "The market expects a reduction and we have to reduce, otherwise prices will fall."
However, bearish demand forecasts from OPEC itself, as well as the International Energy Agency (IEA), helped to offset the threat of a cutback in supply. OPEC lowered its 2009 demand estimate to 84.6 million barrels per day, down from 1.01 million barrels, while the IEA slashed its outlook by roughly 300,000 to 84.4 million barrels per day. Against this backdrop, crude oil for April delivery dropped 78 cents, or 1.7%, to finish at $46.25 per barrel. On a weekly basis, black gold added 1.6%.
Gold futures extended their winning streak to a third day, with analysts crediting today's surge to the inflow of cash from investment funds. The shaky action in the stock market today also drove demand for gold, as many traders continue to harbor doubts that the recent rally is sustainable. Plus, with gold down sharply from its recent peak atop $1,000 per ounce, bargain-hunting is also lending momentum to the malleable metal's advance. By the close, gold for April delivery added $6.10, or 0.7%, to settle at $930.10 per ounce. For the week, gold futures shed 1.5%.
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