The bulls used the Bin Laden news to push the market to new highs but it appears some investors saw the initial pop as an excuse to sell into the rally. Economic news has come in better-than-expected though it appears the euphoria from the historic news is quickly fading as some traders worry about retaliations.
The Commerce Department reported March Construction Spending nearly tripled expectations, coming in at 1.4% versus calls for 0.5% for the month. This was great news considering February’s numbers were the worst in a decade. Elsewhere, the ISM Manufacturing Index posted a reading of 60.4 versus estimates of 59.5. Good news here as well but lower than the 61.2 reading we got last month.
The Dow traded to a high of 12,876 but is currently down 5 points to 12,805. The S&P is lower by 2 points to 1,361 while the Nasdaq is showing a 11 point drop to 2,863.
There are some notable earnings announcements after the bell. Anadarko Petroleum (APC, $79.97, up $1.03), Chesapeake Energy (CHK, $33.57, down $0.10) and Dendreon (DNDN, $42.88, down $0.55) will report earnings after the bell. Of the three, we are most interested in what Dendreon has to say.
We will be back in the morning with a full update. Subscribers, check the Members Area for the trade updates.