US Stock Market Remained Lukewarm Yesterday

US stocks had a lukewarm showing yesterday, as two opposing results prevented either news to make a full impact on the market. While Caterpillar Inc (NYSE: CAT) and Whirlpool Corp (NYSE: WHR) gave upbeat results, while the government announced its plans to start divesting from Citigroup Inc (NYSE: C).

While the Dow Jones Industrial Average moved up 0.8 point, or 0.01%, to end at 11,205.03, the S&P 500 Index seesawed between gains and losses throughout the session to close 5.23 points, or 0.4%, lower at 1,212.05. The Nasdaq Composite Index fell down 7.2 points, or 0.3%, to 2,522.95.

Of the 30 components on the Dow, only 13 ended higher yesterday. However, with 0.01% gain, the index made its sixth consecutive gain. In the blue chip stocks, CAT made the highest move, with shares rising 4.2% following the company’s announcement of its raised guidance for 2010.

Hugh Johnson, chairman of Johnson Illington Advisors, said, “The markets have been doing just about what they're supposed to do, which is if the economic numbers are better than forecast, or if earnings are better than forecast, then the market should go up.” He believed that the markets will face difficulty going ahead as valuations have become an issue. However, this does not mean that the market would not rise.

One stock that pulled down the Nasdaq Composite Index is Citigroup. C’s shares fell 5.1% to $4.61, after the Treasury Department announced its plans to sell up to 1.5 billion of the bank's shares. Goldman Sachs Group Inc (NYSE: GS) also contributed to the fall in the index as its shares suffered following the release of certain emails from Goldman executives by a Senate panel. The emails reflected how these executives celebrated profits, while the housing market crashed.

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