17 Jun 2008 | 10:21
Dow ends marginally lower
The
Dow Jones ended slightly down yesterday, in an otherwise mixed session
for US equities with S&P 500 and Nasdaq recording marginal gains.
The equities opened on a steady note on the back of the gains posted by
the markets in the last couple of sessions of the 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.
The overall sentiments were mixed yesterday after
crude oil prices withdrew to below $134 a barrel and brokerage Lehman
Brothers Holdings Inc. expressed optimism about its future, sparking a
rally in financials. However, as the session progressed as strength in
financials offset weakness in consumer staples and telecom. The initial
strength in equities was also led by crude-oil futures retreating from
a new record high near $140 a barrel in the electronic session, with
crude closing at $134.61 a barrel in New York, down 25 cents.
The
Dow Jones Industrial Average fell 38.27 points, or 0.3%, to end at
12,269.08.Of the Dow's 30 components, 19 closed in the red, with
telecommunications shares fronting the declines. Verizon Communications
Inc. fell 2.9%, while shares of AT&T Inc. Telecom stocks at large
were hit after UBS cut its ratings on Verizon and AT&T. See full
story.
The technology-laden Nasdaq Composite Index climbed 20.28
points, or 0.8%, to end at 2,474.78, with the tech sector showing signs
of life. Yahoo Inc. was in limelight along with Sirius Satellite Radio
Inc. and XM Satellite Radio Holdings Inc.
The S&P 500 Index
$SPX 1,360.14, +0.11, +0.0%) gained 0.11 point to 1,360.14. Financials
were up 1.4%, followed by information technology, up 0.7%. General
Electric -- the second largest company within the S&P 500 was
downgraded to Neutral from Outperform at JPMorgan. The firm feels that
slower economic growth may reduce GE's earnings.
In economic
news, June manufacturing activity in the New York region contracted by
a larger-than-expected amount, according to the NY Empire State Index.
The reading slipped 5.5 to -8.7, which fell short of the consensus
estimate of -2.0. The stock market responded negatively to the report.
Meanwhile,
the global markets, on a broader basis continued to press on inflation
as the prime theme. According to the G8 statement released this
weekend, the soaring commodity and food prices are causing inflation
pressures and a global economic slowdown. The G8 sent out a strong
message of concern and promise of action on rising commodity prices,
the threat of higher inflation and lower economic growth worldwide
following a meeting in Osaka, Japan over the weekend.
Meanwhile,
CPI data released from the euro zone on Monday reinforced the message
by coming in above expectations. Eurostat reported that euro zone
inflation reached an all-time high 3.7% in annualized terms in May, up
from both the previous month's 3.3% increase and the expected 3.6% rise.
Today,
the economic trading catalysts for he US equities are going to be May
US PPI, industrial production, and housing starts and building permits.
With regard to earnings, the big report will come from Goldman Sachs
with traders anxious to see if Goldman was again able to navigate
through the credit turmoil relatively unscathed.
Dow ends marginally lower
The
Dow Jones ended slightly down yesterday, in an otherwise mixed session
for US equities with S&P 500 and Nasdaq recording marginal gains.
The equities opened on a steady note on the back of the gains posted by
the markets in the last couple of sessions of the 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.
The overall sentiments were mixed yesterday after
crude oil prices withdrew to below $134 a barrel and brokerage Lehman
Brothers Holdings Inc. expressed optimism about its future, sparking a
rally in financials. However, as the session progressed as strength in
financials offset weakness in consumer staples and telecom. The initial
strength in equities was also led by crude-oil futures retreating from
a new record high near $140 a barrel in the electronic session, with
crude closing at $134.61 a barrel in New York, down 25 cents.
The
Dow Jones Industrial Average fell 38.27 points, or 0.3%, to end at
12,269.08.Of the Dow's 30 components, 19 closed in the red, with
telecommunications shares fronting the declines. Verizon Communications
Inc. fell 2.9%, while shares of AT&T Inc. Telecom stocks at large
were hit after UBS cut its ratings on Verizon and AT&T. See full
story.
The technology-laden Nasdaq Composite Index climbed 20.28
points, or 0.8%, to end at 2,474.78, with the tech sector showing signs
of life. Yahoo Inc. was in limelight along with Sirius Satellite Radio
Inc. and XM Satellite Radio Holdings Inc.
The S&P 500 Index
$SPX 1,360.14, +0.11, +0.0%) gained 0.11 point to 1,360.14. Financials
were up 1.4%, followed by information technology, up 0.7%. General
Electric -- the second largest company within the S&P 500 was
downgraded to Neutral from Outperform at JPMorgan. The firm feels that
slower economic growth may reduce GE's earnings.
In economic
news, June manufacturing activity in the New York region contracted by
a larger-than-expected amount, according to the NY Empire State Index.
The reading slipped 5.5 to -8.7, which fell short of the consensus
estimate of -2.0. The stock market responded negatively to the report.
Meanwhile,
the global markets, on a broader basis continued to press on inflation
as the prime theme. According to the G8 statement released this
weekend, the soaring commodity and food prices are causing inflation
pressures and a global economic slowdown. The G8 sent out a strong
message of concern and promise of action on rising commodity prices,
the threat of higher inflation and lower economic growth worldwide
following a meeting in Osaka, Japan over the weekend.
Meanwhile,
CPI data released from the euro zone on Monday reinforced the message
by coming in above expectations. Eurostat reported that euro zone
inflation reached an all-time high 3.7% in annualized terms in May, up
from both the previous month's 3.3% increase and the expected 3.6% rise.
Today,
the economic trading catalysts for he US equities are going to be May
US PPI, industrial production, and housing starts and building permits.
With regard to earnings, the big report will come from Goldman Sachs
with traders anxious to see if Goldman was again able to navigate
through the credit turmoil relatively unscathed.
Visit site at – http://investorline.co.in/
Newsroom - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Investor Forums- http://forums.investorline.co.in/
0 comments:
Post a Comment