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U.S. stocks rally back from sharp sell off

Published 03/29/2012, 04:16 PM
Updated 03/29/2012, 04:18 PM
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Investing.com - U.S. stocks ended Friday’s session mixed, bouncing from lows, as investors buy the lows prior to the final day of the largest first quarter rally since 1998. 

Near the close of  U.S. trade, the Dow Jones Industrial Average gained 0.16%, the S&P 500 fell 0.20%, while the Nasdaq Composite dropped 0.31%. 

The Dow was down over 100 points on lack luster economic news prior to a late session rally due to bottom fishing buyers sending the index surging back into positive territory.

Leading to the early selling, the Department of Labor reported the number of individuals filing for initial jobless benefits in the U.S. dropped by 5,000 to a seasonally adjusted 359,000 last week, the lowest level since April 2008, but less than expectations for a decline to 350,000.


The previous week’s figure was revised up to 364,000 from 348,000. 
  
A separate report showed that the U.S. economy grew by 0.3% during the final three months of 2011, unchanged from a preliminary estimate. 

Meanwhile in the euro zone,  Moritz Kraemer, head of sovereign ratings at Standard & Poors stated that Greece will likely have to restructure its debt once again with partners like the International Monetary Fund.

He stated, “ I am not predicting today another restructuring of the debt. At that time maybe the official creditors need to come into the boat.”

In addition, at the same event at the London School of Economics, Poul Thomsen, the IMF mission chief to Greece stated, “while the country has made an aggressive fiscal adjustment, it will take at least a decade to fully complete the countries restructuring.” Further increasing fears that the Greek situation is far from over.

In other stock bearish euro zone news, an indicator of economic confidence surprisingly declined in March to 94.4 from a revised 94.5 in Feburary.

Speculation that the U.S. Supreme Court will overturn aspects of the Affordable Care Act resulted in a rally in health care names with Aetna climbing 4.6%, Health Net adding 2.8%, and WellPoint advancing 1.9% on the session.

Big box electronic retailer Best Buy gave back 6.5% after reporting it will close 50 stores to control costs.

Red Hat grew 15% after stating fourth quarter estimates will likely beat analyst projections.

At the close of European trade, the EURO STOXX 50 traded down 1.76%, France's CAC 40 fell 1.43%, while Germany’s DAX traded lower by 1.77.  Meanwhile, in the U.K. the FTSE 100 gave back 1.15%.

Investors are awaiting the Chicago PMI and French consumer spending as well as the start of the euro zone finance minister meeting on Friday.




 

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