MARKET SNAPSHOT: U.S. Stocks Toy With Another Run At November Lows

By Kate Gibson

The U.S. stock market's climb on Thursday had investors steering clear of three-month lows tested earlier in the week, with the bear-market bottom called by some in November holding for now. But not all believe that bottom will hold.

The Dow Jones Industrial Average (DJI), which on Tuesday fell nearly 300 points to close at 7552.6, just 0.31 points from matching a 51/2-year low hit on Nov. 20, 2008.

The blue-chip index on Thursday wavered between positive and negative territory, and lately churned mixed, echoing the prior day's listless action, which had the Dow crossing zero 51 times. The Dow was lately off 16.96 points at 7,538.67, with 17 of its 30 components trading in the black.

Financials fronted the declines, with Hartford Financial Services (HIG) among the hard hit, its stock off 19%.

The S&P 500 Index (SPX) fell fractionally to 788.49, and the Nasdaq Composite Index (RIXF) declined 5.83 points to stand at 1,462.14.

Nick Kalivas, an analyst with MF Global Research, said bearish-leaning sentiment would likely propel another broad-market run at November lows.

In looking at S&P 500 futures, "best guess for today's range: 785 to 743," Kalivas wrote of S&P 500 futures in a note ahead of Thursday's open.

While the Dow and S&P broke their mid-January lows earlier in the week, the Nasdaq offered an encouraging sign by holding above its comparable level, according to Marc Pado, U.S. market strategist at Cantor Fitzgerald.

"Investor resolve is clearly getting tested, although I would say that this is a balancing act between the fact that the economy is continuing to deteriorate, although no one anticipated a turnaround anytime soon, and the argument over the effectiveness of the stimuli being injected from every direction," he said.

"As February continues to wilt away, I am maintaining my thus-far-correct position that equities are not priced for a continuation of the severe economic contractions we've seen in the fourth quarter and first quarter," said Dan Greenhaus, an analyst with the equity strategy group at Miller Tabak & Co. "We are, of course, going to overshoot on the downside, but my position at the end of last year remains the same as it does now, in the 700 range."