US Markets Update

Market breadth was positive. On the NYSE, winners topped losers four to three. On the NASDAQ, advancers topped decliners seven to six.

The market advanced earlier in the session on positive data relating to jobs and service industries. The US services sector grew in February at its fastest pace in more than two years and ahead of forecasts. The Institute for Supply Management's index of non-manufacturing businesses, which make up almost 90% of the economy, rose to 53.0 from 50.5.

Jobs shed by US private employers in February dropped from the prior month, while US firms' planned layoffs fell to the lowest level since 2006. US companies cut 20,000 jobs last month, ADP Employer Services said. Job placement firm Challenger, Gray & Christmas said planned firings fell 77% in February.

The Fed released its Beige Book businesses survey for January and February later in the session. The report showed that economic activity picked up somewhat in 9 of the Fed's 12 districts and consumer spending also improved modestly.

Advancing stocks on the Dow included Caterpillar, Home Depot, general Electric, Coca-Cola and Boeing.

Hedge fund Elliott Associates made an unsolicited all-cash offer for Novell that values the business software maker at around US$2B, representing a 21% premium over Novell's closing stock price from Tuesday. Novell jumped 28% and was the NASDAQ's most-atcively traded stock.

On the downside, biotech Medication lost two-thirds of its value after the company said that its experimental Alzheimer drug Dimebon failed to produce desired results in a late-state clinical study. Pfizer, which co-develops the drug, lost 1%. Most healthcare stocks were lower.

US Economic Calendar

• Mar-04 - Initial Claims (For: Feb-27, F/Cast: 470K, Prior: 495K)
• Mar-04 - Continuing Claims (For: Feb-20, F/Cast: 4600K, Prior: 4617K)
• Mar-04 - Productivity-Rev. (For: Q4, F/Cast: 6.3%, Prior: 6.2%)
• Mar-04 - Unit Labor Costs (For: Q4, F/Cast: -4.5%, Prior: -4.4%)
• Mar-04 - Factory Orders (For: Jan, F/Cast: 1.8%, Prior: 1.0%)
• Mar-04 - Pending Home Sales (For: Jan, F/Cast: 1.0%, Prior: 1.0%)

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