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NEW YORK (MCT) — Stocks faltered Wednesday, hurt by weakness in the health care sector fueled by unpromising test results for a new Alzheimer's drug and a new call by President Barack Obama to pass fed- eral health-care legislation. The market rallied through most of the session, aided by favorable readings of jobs, service-sector activ- ity, and the Federal Reserve's beige book of regional indicators. But the gains dried up late in the session. The Dow Jones Industri- al Average ended with a 9.22-point decline at 10,396.76, after rising more than 60 points at its morn- ing high. It's down 0.3 per- cent year-to-date. The ses- sion decline marked the sec- ond time in a row that the Dow failed to maintain an intraday rally that could have put it in the black for 2010. The Nasdaq Composite Index slipped by a fraction of a point to 2,280.68. The S&P 500 was up 0.48 point to 1,118.79. Both indexes were flat in percentage terms. Pfizer Inc. was the Dow's weakest component, with its shares off 1.6 percent after Medivation Inc. said its experimental Alzheimer's disease treat- ment Dimebon, which was in development with Pfizer, failed to show effectiveness in a large late-stage study. The news sent shares of Medivation, which is not a Dow stock, plunging 67.5 percent. Health insurers clung to gains after Obama's speech, but a number of drug dis- tributors lost ground after Obama proposed elimina- tion of "wasteful" subsidies of pharmaceutical compa- nies. Obama said he is seek- ing to push the "long and wrenching debate" over health care into its final stages and asked lawmakers to schedule a vote on over- haul legislation "in the next few weeks." Health care stocks have been sensitive to the possi- bility that any possible changes enacted in Wash- ington might cut into private providers' profits. The sec- tor picked up a bit in mid- January when Republicans picked up a 41st seat in the Senate _ a development that was thought by many to dim the prospects of pas- sage of a health bill. But on Wednesday, investors had to reconsider the possibility that a bill might get through after all. "A lot of the legislative news has already been priced into these stocks, so they're not exactly getting killed," said Todd Leone, head trader at Cowen & Co. "But at the same time, pas- sage of any bill would be a negative for the sector if and when it happens. I think we're looking at about a 50- 50 possibility of that at this point." The session's strong eco- nomic data helped basic- materials and industrial stocks, which tend to be sensitive to the pace of glob- al recovery. Caterpillar Inc. and Alcoa Inc. were up 0.7 percent and 0.8 percent respectively, while General Electric Co. was up 0.8 per- cent. Among stocks to watch, Novell Inc. shares surged 28 percent to $6.08, topping an offer price announced late Tuesday from hedge fund Elliott Associates and sparking speculation anoth- er software company or hedge fund could step in with a higher bid. Volume was below-aver- age, with composite turnover in New York Stock Exchange-listed companies hitting 4 billion shares. 8B – Daily News – Thursday, March 4, 2010 BR380 D BACK PACK BLOWER $ 349 95 Great for breaking up loose clumps of wet leaves and debris, this reduced emissions STIHL leaf blower features an easy grip throttle control with cruise control and a smaller tube diameter for higher air velocity. SG 20 MANUAL BACKPACK SPRAYER $ 119 95 The SG20 has a pressurized fluid reservoir separate from the main tank, so you can maintain constant pressure and refill without losing working pressure. MS 180 C-BE MiniBossTM $ 229 95 14" bar POLE PRUNERS HT 100 $ 449 95 HT 101 $ 599 95 HT 131 $ 649 95 All prices are PS-SRP. Available at participating dealers. © 2010 STIHL PAS9-1522-87145-11 * NO Sale Thru Wed. March 31, 2010 *"no sales tax" in reference to discount given equal to the amount of calculated sales tax. 632 Main St., Red Bluff 527-5837 NORTH VALLEY MATTRESS MON.-FRI. 9:00-5:30 • SAT. 9:00 -5:00 • CLOSED SUNDAYS www.rollinghillscasino.com Stocks relapse as health care sector weighs on optimism Wall Street