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DJIA Industrial Average

March 31

Open: 12350.61

High: 12381.68

Low: 12319.01

Close: 12319.73

Change: -30.88 (-0.25%)

RSI: 60

MACD: 57.5

Strategy: Stocks in US remained quiet on the final day of the first quarter as investors looked satisfied with 6% gains that indices have already made since the start of the year. DJIA is trying to regain feet above 12300 points.

Commentary:

Despite a quiet close to the first quarter, the U.S. stocks ended a strong first quarter Thursday. While the geo-political tensions failed to disturb the market run, yet the investors appear to have turned slightly cautious in the month of March.

The Dow Jones industrial average fell 30.88 points, or 0.25% Thursday ahead of the all important employment report. The S&P 500 fell 2.4 points, or 0.2% and Nasdaq Composite gained nearly 4 points, or less than 0.2%.

With this, The Dow has advanced 6.5%, the S&P 500 up 5.6% and the Nasdaq up 4.8% in the first three months of the year.

Amongst the index stocks, 3M with 1.11%, United Technologies 0.50%, Coca Cola 0.45% and McDonald’s 0.37% were the major stocks to advance.

However, there were some Dow components like American Express -1.55%, Intel -1.37%, Home Depot -1.36% and Cisco -1.04% shed more than 1% in the day.

An aggregate of 8 stocks advanced amongst the 30 Dow constituents and the others slipped in the day.

Advancing Sectors in the session included Industrials (+0.4%) and Materials (+0.4%). However, Tech (-0.3%), Financials (-0.4%) and Consumer Discretionary (-0.4%) sectors remained weak in the day.

Amongst the economic indicators released Thursday, The Chicago-area PMI for March fell to a reading of 70.6, compared to February's reading of 71.2. Economists were looking for a reading of 68.9.

Elsewhere, The Commerce Department said factory orders fell by 0.1% in February. A 0.4% rise was anticipated by economists.

Meanwhile, in the latest jobless claims released, Initial jobless claims for the week ended March 26 slipped marginally to 388,000. But the same was slightly greater than the 383,000 initial claims that had been expected.

On Friday, the government will release the closely watched monthly jobs report. It has been forecast that a 180,000 jump in payrolls for March may have been noticed, with the unemployment rate steady at 8.9%.

Elsewhere, Treasury Secretary, now in China for a meeting of G-20 finance ministers, said developing nations need flexible exchange rates to help absorb economic shocks.

Intel shares were in limelight on the Dow, as it slipped 1.4% after analysts at FBR Capital cut their price target on the chipmaker.

Berkshire Hathaway, Warren Buffet’s flagship company fell 2%, after Buffett's heir apparent, David Sokol, quit. In a press release Wednesday, Buffett termed the resignation as a total surprise.

Shares of defense contractor Northrup Grumman fell 9% after analysts at Citigroup cut their price target for the company.

The dollar fell against the euro and the Japanese yen, but was flat versus the British pound.

Oil for May delivery gained $2.36 to $106.63 a barrel to scale to a new high.

Gold futures for June delivery rose $15.10 to $1,438.90 an ounce. The other precious metal-silver also continued to be strong in the session and closed the day at over $37 an ounce for June delivery.

The Day Ahead

Friday

Monthly employment report for March

Automobile sales for March

ISM Mfg Index for March

Construction spending for Feb