Indexes Scrabble To Higher Close On Weak Volume

Markets recovered Friday from an early slip and moved steadily to higher ground. But volume fell a tad from Thursday's pace, preliminary data show.

The NYSE composite moved up 0.2%, the Nasdaq 0.3%. The S&P 500 eked out a 0.1% gain, while the Dow slipped a like amount.

Fertilizer producers moved higher, led by Mosaic's (MOS) 10.55 jump to 115.07. The company reported Q3 EPS of 1.17, up from a nickel a share in the year-ago period and 22 cents ahead of views. Sales almost doubled to $2.15 billion, easily beating views of $1.92 billion. Mosaic also announced plans to expand potash production capacity at its Saskatchewan operations.

First Solar (FSLR) shot up 26.40 to 278. The 11% jump extended a breakout above a 236.67 buy point on a cup-with-handle base.

Strayer Education (STRA) blasted 10.03 higher to 171.46. The 12% move bumped shares back above their 10-week moving average as the stock continues to try to build a base.

Specialty alloys producer Allegheny Technologies (ATI) sprung 8.95 to 84, despite a downgrade by Cowen. The 12% rise lifted Allegheny's shares above their 10-week moving average for the first time in five weeks.

3:15 p.m. Update: Stocks Pull Back In Late Trade

By VINCENT MAO

Stocks gave back a chunk of gains with just about an hour remaining in Friday's session.

At 2:42 p.m. EDT, the Nasdaq was up 0.8%, down from session highs of 1.2%. The NYSE composite and S&P 500 rose 0.6% each. Meanwhile, the Dow was up 0.2%.

Turnover continued to track lower across the board.

Gafisa (GFA) gained 1.89, or 5%, to 39.04. The Brazilian home builder touched a new high in early March, but then quickly sold off. It's now trying to build the right side of a new base after a pullback to near its 200-day moving average.

W&T Offshore (WTI) gapped up and gained 2.29, or 7%, to 36.63 in heavy trade. The oil producer is wrapping up the sixth week of a potential cup base. The stock's Accumulation/Distribution Rating has improved to B from D last month. W&T Offshore's profit growth fell 17% last year, but analysts expect a turnaround this year.

May crude jumped $2.02, or 2%, to $105.85.

On the downside, Morningstar (MORN) dropped 1.60 to 64.58 in brisk trade. But the investment research firm appears to be finding support near its 10-week and 40-week moving averages.

1:15 p.m. Update: Stocks Turn Green In Midday Trading

By VINCENT MAO

The major stock indexes turned higher in midday trading Friday, shaking off dismal jobs data.

At 12:45 p.m. EDT, the Nasdaq and S&P 500 jumped 0.7% and 0.6%, respectively. Both fought back from earlier losses of 0.5%. The NYSE composite gained 0.7% and the Dow 0.3%.

Volume was again tracking slightly lower on both exchanges.

Fertilizer, school and alternative-energy groups continued to ramp higher. Home builders pulled back. Although, the Building-Residential/Commercial group is up about 53% off its January low.

SunPower (SPWR) rallied 6.79 to 88.80 in brisk trade. That pushed the maker of solar electric systems back above its 200-day moving average. The San Jose, Calif.-based firm reports Q1 earnings on April 17. Profit is slated to rise 21% to 35 cents a share, down from five straight periods of triple-digit growth.

Transocean (RIG) tacked on 4.76 to 145.16. The offshore drilling contractor cleared a 145.07 buy point from a cup-with-handle pattern. Volume was tracking about 80% above average. Volume was light as the handle developed, just as you'd want to see.

Group mate Pride International (PDE) gained 1.49 to 37.09 in heavy trading. The Texas-based drilling firm is closing in on a 37.34 buy point of a double-bottom-with-handle pattern.

Crude oil rose $1.17 to $105 a barrel.

On the downside, Hub Group (HUBG) dropped 1.86, or 7%, to 3.35 in busy trading. Raymond James downgraded the trucking and logistics firm to underperform from market perform.

11:15 a.m. Update: Stocks Can't Lift Much From Morning's Lows

By ALAN R. ELLIOTT

Indexes slipped lower, apparently on worse-than-expected jobs data for March, but education stocks and many leading issues made solid moves higher.

The NYSE composite was down a fraction, and the Nasdaq and S&P 500 were off 0.2% at 10:49 a.m. EDT, with banks and financial sectors pulling to the downside. The Nasdaq's biotech index posted a 1.2% gain. The Dow slipped 0.5%, yanked lower by General Motors (GM) and Alcoa (AA).

Volume was mildly lower, and decliners led advancing stocks by narrow margins on both exchanges.

Markets in Europe and the U.K. were mixed. London's FTSE 100 added 0.3%, led by BHP Billiton (BHP) and GlaxoSmithKline (GSK). The CAC-40 in Paris dropped 0.5% and the DAX in Frankfurt dipped 0.4%. Both reversed out of early gains after the U.S. jobs report was released.

In Tokyo, the Nikkei 225 dipped 0.7%. Downgrades hit auto stocks. Steel makers slipped on margin concerns, despite an upward move of the dollar vs. the yen, which could reignite U.S. demand. Markets in Shanghai and Hong Kong were closed for a holiday.

In the U.,S., private education stocks moved sharply higher. Strayer Education (STRA) jumped 8.76 to 170.19. ITT Educational Services (ESI) chalked up a 5.95 gain to 58.86. DeVry (DV) popped 2.80 to 47.33.

First Solar (FSLR) jumped 17.53 to 269.13. The solar module maker broke above a 236.67 buy point on a deep, low cup-with-handle base last week. It is 12% above that buy point.

Massey Energy (MEE) steamed ahead 5.38 to 48.26 after announcing plans to invest about $310 million to expand its Central Appalachia coal-mining operations this year. The company also upped its price expectations for its low-sulphur metallurgical coal for the year to $61.00 to $63.00 per ton in 2008, up from a projected $55.50 to $56.00 per ton in Q1. The 13% jump blasted the coal producer out of a deep, six-week pullback. Worth noting: Massey's earnings fell from strong triple digits to a 40% decline in Q4, and Q1 views call for a 19% decline.

Offshore oil and gas drilling contractor Transocean (RIG) stepped up 4.53 to 144.91 on solid volume. The move left shares just a shade below a 145.07 buy point on a cup-with-handle base.

On the downside, surgical implant maker Zimmer Holdings (ZMH) gapped down 1.69 to 77.87 after a downgrade from Standard & Poor's. The heavy-volume move left the stock just above its 10-week line.

10:15 Update: Stocks Slip In Early Trade

By VINCENT MAO

Stocks were modestly lower early Friday, as investors digested news of another big drop in payrolls.

At 9:53 a.m. EDT, the Dow lost 0.3%, dragged down by a 5% drop in shares of General Motors (GM). The Nasdaq and S&P 500 each slipped 0.1%.

Volume was tracking lower across the board.

AZZ Inc. (AZZ) dropped 4.50, or 12%, to 34 in heavy trading, mainly due to poor sales. Before the open, the electrical equipment maker said Q4 profit edged up to 60 cents a share, up from 58 cents the prior year and a penny above views. But sales slipped 4% to $76.6 million well shy of views of $89 million. On the bright side, the company guided fiscal 2009 earnings and sales ahead of views.

CSX Corp. (CSX) fell 1.20 to 57.45 on a downgrade. Merrill Lynch and Co. cut the rail operator to neutral from buy on valuation.

On the upside, Compass Minerals International (CMP) gained 3.90 to a new high of 37.95 in fast trade. It makes salt and specialty fertilizers.

Monsanto (MON) rallied 3.20 to 120.99. The agricultural operations giant is nearing a 123.90 buy point of a double-bottom base. And its Accumulation/Distribution rating has improved to C from D late last month.

9:15 a.m. Update: Stocks Headed For Higher Open

By VINCENT MAO

Stock futures signaled a higher open Friday, despite disappointing jobs data.

Nasdaq futures climbed 11 points vs. fair value, S&P 500 futures rose 2 points and Dow futures tacked on 39 points.

In economic news, the Labor Department said the economy lost jobs for the third straight month. Nonfarm payrolls dropped by 80,000 in March, the biggest decline in five years. That was also worse than estimates for a loss of 50,000 jobs. Most of the losses were in manufacturing and construction.

Figures for January and February were revised down by a total of 67,000 jobs.

The unemployment rate climbed to 5.1% from 4.8% in February, the highest since September of 2005. Average hourly wages rose 0.3%, as expected.

The weak jobs report does raise the likelihood of additional interest rate cuts. The Federal Reserve next meets April 29-30.

The dollar fell against the euro, but rose against the yen.

The Mosaic Company (MOS) rose 7% in pre-market trading on strong earnings. The fertilizer maker reported fiscal Q3 profit of $1.17 a share, up from a nickel a share in the year-ago period and 22 cents ahead of views. Sales almost doubled to $2.15 billion, easily beating views of $1.92 billion. Mosaic also announced plans to expand potash production capacity at its Saskatchewan operations.

Group mates Potash Corp. of Saskatchewan (POT) and CF Industries (CF) rose 3% each.

LDK Solar (LDK) moved up 6% in the pre-open after it signed three supply contracts. The Chinese maker of solar wafers said it inked two wafer supply deals and one polysilicon sourcing agreement.

UBS (UBS) climbed 3% in pre-market trading after a former executive urged the firm to spin off its investment banking business after sustaining huge losses from subprime-related investments. The Swiss bank has booked more than $37 billion in write-downs in the past nine months.

http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-24275980.htm

Business Financial Services

Indexes Scrabble To Higher Close On Weak Volume