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Stocks finished a volatile session on a mixed note mirroring a likewise volatile and mixed performance for the first quarter, with the Dow Jones Industrial Average now in negative territory for the year so far, while other stock proxies hold on to meager gains. The market initially took a sharp downturn after news that the U.S. has imposed trade sanctions on China and as tensions over a stand-off between Iran and the UK kept oil prices near $66 a barrel.

Today, the Dow Jones industrial average closed up 5.60 or 0.05% to 12,354.35, the broader S&P 500 closed down 1.67 or 0.12% to 1,420.86, and the Nasdaq composite closed up 3.76 or 0.16% to 2421.64. For the week, the Dow lost 1%, the S&P lost 1%, and the Nasdaq lost 1.1%. For the month, the Dow gained 0.7%, the S&P 500 gained 1% and the Nasdaq composite added 0.2%. For the quarter, the Dow lost 0.9%, the S&P 500 gained 0.2% and the Nasdaq composite gained 0.3%.

Market breadth was positive. On the New York Stock Exchange, winners topped losers 9 to 7 on volume of 1.58 billion shares. On the Nasdaq, advancers beat decliners 4 to 3 on volume of 2.06 billion shares.

Stocks rose following a series of strong readings on personal income and spending, manufacturing and construction. However, news that the U.S. Commerce Department is reversing a decades-old policy and will begin to impose tariffs on some goods from China, became a damper.

Both consumer spending and personal income rose faster than expected in February, showing that the economy was stronger than Wall Street forecasts. However, there also was an inflation reading that was higher than hoped. Spending was up 0.6%, compared to the 0.5% rise in January. Economists had been looking for growth to slow to a 0.3%. Income was also up 0.6%, compared to the 1% rise in January. Economists had been looking for slowdown in income growth to a 0.3%.

Stock of Dendreon closed up $7.71 or 150% to $12.93, after a FDA panel said that its treatment for advanced prostate cancer is reasonably safe and effective. Its novel cancer therapy Provenge is a therapeutic cancer vaccine designed to stimulate the immune system to fight an existing cancer. It differs from traditional vaccines meant to prevent disease in people not yet sick. The FDA is scheduled to decide by May 15 whether to approve Provenge for sale.

Shares of PMC Sierra closed up $0.71 or 11% to $7.01, after the chipmaker said that it was closing two R&D centers in Canada and cutting jobs as part of a restructuring effort. The company also said that first-quarter revenue will be in the middle to high end of its previous forecast.

Shares of Dell closed down $0.18 to $23.21, after it said that an internal audit of its accounting showed errors in its financial controls, which could result in restatements of past quarters. This means that Dell would not file its annual report with securities regulators by the April 3 due date, or by an extension date of April 18.

U.S. light crude oil for May delivery fell 16 cents to settle at $65.87 a barrel in New York Mercantile Exchange trading after having risen in the morning. Prices have been on the rise recently amid worries about the conflict with Iran.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
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