Midday Market Update: Markets Trend Lower on High Jobless Claims Before Afternoon Boost

By Jennifer Yousfi
Managing Editor

The U.S. markets reversed course in afternoon trading, heading higher as commodities producers rallied and tech stocks got a boost.

Early morning losses were due to the high number of initial jobless claims and talk of a U.S. recession from Federal Reserve Chief Ben S. Bernanke in his second day of testimony before the Joint Economic Committee.

At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 41.52 points (-0.33%), to trade at 12,564.31. The tech-laden Nasdaq Composite Index increased 9.22 points (0.39%), to reach 2,371.97. And the broader Standard & Poor's 500 Index rose 2.30 points (0.17%), to hit 1,372.48.

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The basic materials sector (up 1.39%) and the energy sector (up 1.01%) posted the biggest gains, while the conglomerates sector (down 0.94%) and the consumer cyclical sector (down 0.95%) posted the largest declines.

Shares of Exxon Mobil Corp. (XOM) and seed producer Monsanto Co. (MON) gained as oil prices climbed and corn rose to a record high.

Initial jobless claims for the week ended March 29 jumped by 38,000 to reach 407,000, marking the highest level seen for this economic indicator since mid-September 2005, MarketWatch reported.

In overseas markets, Japan's Nikkei Index gained 200.54 points to close at 13,389.90. Hong Kong's blue-chip Hang Seng Index had a 392.20-point increase, to close at 24,264.63.

European bourses reversed a two-day streak of gains with the Paris-based CAC40, London's FTSE 100, Madrid's IBEX 35 and the Frankfurt-based DAX all posting slight losses.

At midday, the dollar had gained ground against the euro (up 0.224%) and the yen (up 0.157%), but lost ground against the pound sterling (down 0.456%).

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