18 Jun 2008 | 09:38
Dow ends lower for consecutive sessions
U.S.
stocks gave away some of the early gains and ended lower on Tuesday
with financial shares leading the sharp decline, after Goldman Sachs
Group Inc warned of further losses in the sector and economic data
fueled further worries about inflation and the troubled housing market.
Goldman warned U.S. banks might need to raise as much as $65 billion in
new capital, with losses in the financial sector not expected to peak
until next year.
After an early rise, the Dow Jones Industrial
Average fell 108.78 points to settle at 12,160.3, with just three of
its 30 components ending in green. The current retreat has made the Dow
gave away its moderate gains recorded last week and the benchmark US
index continues to linger just above its two month lows as traders
continue to fret over a combination of rising inflationary pressure and
weak economic data. The other indices, the broader S&P 500 as well
as the tech heavy Nasdaq also gave away their Monday?s gains to end
lower yesterday. S&P 500 fell 9.21 points to finish at 1,350.93
while the Nasdaq Composite shed 17.05 points to 2,457.73.
The
markets had opened on a marginally optimistic note as Goldman Sachs-
the world's largest securities firm again reported quarterly results
topping expectations. However, the persistent weakness in the
sentiments pulled the stock down, ending down 1.3%. Shares of Best Buy
Co. No. 1 electronics retailer in US fell also fell 5.3%, after
reporting that the quarterly profit fell 6.8%.
Meanwhile, the
economic data continued to paint a sorry state of affairs. The U.S.
Labor Department said that producer prices were up 1.4% in May and up
7.2% from a year ago, more than expected.
The U.S. Census
Bureau said that housing starts were at an annual rate of 975,000 units
in May, down 3.3% from April's pace and less than expected. It was the
smallest number of housing starts in 17 years. So far in 2008, housing
starts are down 31% from a year ago.
The Federal Reserve said that industrial production was down 0.2% in May, weaker than expected.
The
Dow Jones ended slightly down on Monday, after opening on a steady note
on the back of the gains posted by the markets in the last couple of
sessions of the previous week, when a strong US retail sales data,
along with a in line core inflation figure provided life in an other
battered market which had seen the Dow Jones Industrial Average plunge
to its two months low of 12076.93 on Wednesday.
On commodities front, crude oil for July delivery closed 60 cents lower at $134.01 a barrel on the New York Mercantile Exchange.
Dow ends lower for consecutive sessions
U.S.
stocks gave away some of the early gains and ended lower on Tuesday
with financial shares leading the sharp decline, after Goldman Sachs
Group Inc warned of further losses in the sector and economic data
fueled further worries about inflation and the troubled housing market.
Goldman warned U.S. banks might need to raise as much as $65 billion in
new capital, with losses in the financial sector not expected to peak
until next year.
After an early rise, the Dow Jones Industrial
Average fell 108.78 points to settle at 12,160.3, with just three of
its 30 components ending in green. The current retreat has made the Dow
gave away its moderate gains recorded last week and the benchmark US
index continues to linger just above its two month lows as traders
continue to fret over a combination of rising inflationary pressure and
weak economic data. The other indices, the broader S&P 500 as well
as the tech heavy Nasdaq also gave away their Monday?s gains to end
lower yesterday. S&P 500 fell 9.21 points to finish at 1,350.93
while the Nasdaq Composite shed 17.05 points to 2,457.73.
The
markets had opened on a marginally optimistic note as Goldman Sachs-
the world's largest securities firm again reported quarterly results
topping expectations. However, the persistent weakness in the
sentiments pulled the stock down, ending down 1.3%. Shares of Best Buy
Co. No. 1 electronics retailer in US fell also fell 5.3%, after
reporting that the quarterly profit fell 6.8%.
Meanwhile, the
economic data continued to paint a sorry state of affairs. The U.S.
Labor Department said that producer prices were up 1.4% in May and up
7.2% from a year ago, more than expected.
The U.S. Census
Bureau said that housing starts were at an annual rate of 975,000 units
in May, down 3.3% from April's pace and less than expected. It was the
smallest number of housing starts in 17 years. So far in 2008, housing
starts are down 31% from a year ago.
The Federal Reserve said that industrial production was down 0.2% in May, weaker than expected.
The
Dow Jones ended slightly down on Monday, after opening on a steady note
on the back of the gains posted by the markets in the last couple of
sessions of the previous week, when a strong US retail sales data,
along with a in line core inflation figure provided life in an other
battered market which had seen the Dow Jones Industrial Average plunge
to its two months low of 12076.93 on Wednesday.
On commodities front, crude oil for July delivery closed 60 cents lower at $134.01 a barrel on the New York Mercantile Exchange.
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