Market Wrap-Up

The Lowdown
Stocks and most exchange-traded funds finished mixed Monday, as a rising dollar bumped commodity prices down and diluted overseas profits for U.S. multinationals.

The Dow Jones Industrial Average caught a late surge and gained 17 points to close at 10642. The S&P 500 ended flat, up a point at 1151, and the Nasdaq dropped 5 to 2362.

The Federal Reserve Bank of New York’s Empire Manufacturing Survey showed a decrease in its business conditions index to 22.86 this month, down from 24.91 in February. Economists had expected a reading of 24.0 for March.

Still, the reading “indicates that conditions for New York manufacturers continued to improve at a steady pace in March,” according to the report.

The report also showed new orders jumped sharply. And one especially positive sign: the report showed considerable improvement in labor markets.

Moody’s Investors Service said the risks are growing to the four largest triple-A-rated countries — Germany, France, the U.K. and the U.S. In addition, Chinese Premier Wen Jiabao warned of a double-dip recession given financial system risks and continued high unemployment in some countries.

In other markets, the dollar strengthened against both the euro and the yen while Treasurys stayed flat, with the 10-year note up yielding 3.70%. Crude-oil futures dropped $1.31 to $79.93 a barrel, though gold futures rose $4.80t at $1106.50 an ounce.

Retail apparel giant Phillips-Van Heusen (PVH) agreed to acquire clothing company Tommy Hilfiger (TOM) for roughly $3 billion, a deal Phillips said would immediately add to earnings.

For a detailed rundown on Monday’s trading session see our market story.

Winners
The Consumer Staples Select Sector SPDR fund (XLP) rose 0.8%. Health Care Select Sector SPDR fund (XLV) rose 0.7% as the political machinations surrounding a reform law continued.

Losers
The iShares MSCI Taiwan Index fund (EWT) dropped after Premier Wen’s comments, shedding 1.8%. China is Taiwan’s largest trading partner. The United States Oil fund (USO) dropped 0.17% as crude prices wavered.

Monday’s Industry Headlines

Launching Pad
State Street Global Advisors sought permission from the Securities and Exchange Commission to launch seven indexed bond ETFs linked to the public and private sectors. Some also focus on specific industries. The proposed funds are: the SPDR S&P Agency Bond ETF, the SPDR Barclays Capital Corporate Bond ETF, the SPDR Barclays Capital Corporate Industrial Bond ETF, the SPDR Barclays Capital Corporate Financial Bond ETF, the SPDR Barclays Capital Corporate Utilities Bond ETF, the SPDR Barclays Capital Zero Coupon Bond ETF and the SPDR Barclays Capital CMBS ETF. They are based on the S&P U.S. Agency Bond Index, the Barclays Capital U.S. Corporate Bond Index, the Barclays Capital U.S. Corporate Industrial Bond Index, the Barclays Capital U.S. Corporate Financial Bond Index, the Barclays Capital U.S. Corporate Utilities Bond Index, the Barclays Capital U.S. Treasury STRIPS Index and the Barclays Capital CMBS ERISA-Eligible Index, respectively.

Tuesday’s Notebook

Earnings and Conference Calls
4Kids Entertainment, AAR, Akorn, Ambac Financial Group, Anika Therapeutics, Applied Energetics, ARIAD Pharmaceuticals, Astro-Med, China Nuokang, Cloud Peak Energy, Deutsche Bank, Discover Financial Services, Emdeon, Ever-Glory International Group, FactSet Research Systems, Focus Media Holding, FX Energy, Lightbridge, MDS, Molecular Insight Pharmaceuticals, Retalix, ShengdaTech, Simcere Pharmaceutical Group, Telanetix, Town Sports International Holdings, Unigene Laboratories, ValueVision, X Rite

Economic Data
7:45 a.m. ICSC-Goldman Store Sales
8:30 a.m. Housing Starts
8:30 a.m. Import and Export Prices
8:55 a.m. Redbook
2:15 p.m. FOMC Meeting Announcement

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