Stocks end quietly after Obama's budget plan

chart_ws_index_sp500.top.pngClick the chart for more market data. By Ken Sweet, contributing writer


NEW YORK (CNNMoney) -- U.S. stocks ended Monday's session mixed, as investors digested President Obama's 2012 budget proposal in a quiet trading session.

The Dow Jones industrial average (INDU) fell 5 points, or less than 0.1%, to 12,268; the S&P 500 index (SPX) gained 3.2 points, or 0.2%, to 1,332; and the Nasdaq Composite (COMP) rose 7.7 points, or 0.3%, to 2,817.

Exxon Mobil (XOM, Fortune 500), Chevron (CVX, Fortune 500) and Alcoa (AA, Fortune 500) were among the top performers on the Dow, helped by a Chinese trade balance report that showed a 51% jump in imports last month for the world's now second-largest economy. Copper futures also climbed 2.1% during the session.

"Commodities, along with the long-term inflation story, continue be the primary support for this market," said Liz Ann Sonders, Charles Schwab's chief investment strategist.

Wal-Mart (WMT, Fortune 500) and Verizon (VZ, Fortune 500) were the biggest losers on the blue-chip index.

President Obama unveiled his administration's $3.7 trillion budget proposal, which will cut the nation's long-term deficit by about $1.1 trillion over the next 10 years.

Traders however said there was little for Wall Street to react to in the White House's proposal.

"The budget is not going to have a meaningful impact on equities," said Michael James, senior equity trader at Wedbush Morgan Securities in Los Angeles. "A lot of this was known well in advance."

Stocks hit multi-year highs and ended the week strong on Friday, as investors cheered the resignation of Egyptian President Hosni Mubarak.

For the week, the three major indexes closed 1.5% higher. The Dow and the S&P ended Friday's session at their highest levels since mid-June 2008.

Economy: With no reports on the domestic economy, stocks will probably have a "sideways performance," said Peter Cardillo, chief market economist with Avalon Partners.

Congress will hold budget hearings throughout the week, and investors are likely to focus their attention on deficit levels.

Companies: Shares of Emergency Medical Services (EMS). plunged 11%, after private equity firm Clayton, Dubilier & Rice announced plans to buy the company for $3.2 billion.

FedEx (FDX, Fortune 500) and UPS (UPS, Fortune 500) shares fell 1% in aftermarket trading after FedEx lowered its third-quarter outlook, citing the bad weather that plagued most of the nation this year and higher fuel costs.

Shares of General Electric (GE, Fortune 500) rose 0.8%, after the industrial conglomerate said it would purchase an oil-and-gas engineering company for $2.8 billion.

Shares of Green Mountain Coffee Roasters (GMCR) rose 7% on heavy volume after Starbucks (SBUX, Fortune 500) confirmed it was working on creating branded single-brew coffee products, but declined to say if it was working on a separate product or a partner. Green Mountain, with its Keurig cup system, is the largest producer of single-serve coffee products.

Netflix (NFLX) shares rose 7%, after the company's stock was upgraded by two investment firms. Shares also got a boost after chipmaker Qualcomm (QCOM, Fortune 500) said at an industry conference that it planned to bring streaming video onto Google Android-enabled smart phones.

Internet radio site Pandora filed late Friday to raise up to $100 million in an initial public offering.

World markets: European stocks ended mixed. Britain's FTSE 100 was little changed, France's CAC 40 eased 0.1% and Germany's DAX rose 0.3%.

As expected, China overtook Japan as the world's second-largest economy. According to government statistics, Japan's economy was valued at $5.47 trillion dollars in 2010, while China was at $5.88 trillion.

China's trade surplus shrunk to $6.5 billion in January, with exports rising 37.7% and imports rising 51%, according to news reports.

Asian markets ended higher. The Shanghai Composite jumped 2.4%, the Hang Seng in Hong Kong added 1.3% and Japan's Nikkei gained 1.1%.

Currencies and commodities: The dollar rose against the euro and the British pound, but eased versus the Japanese yen.

Oil for March delivery settled down 63 cents to $84.95 a barrel.

Gold futures for April delivery rose $4.70 to $1,365.10 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield down to 3.61% from 3.64% late Friday.  To top of page

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Treasuries 1.73 0.00 0.12%
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