US Market back in the red
US Market was back to its loss making mode today, Wednesday, 09 July,
2008 and indices negated all of its yesterday?s gains. Weakness in the
two crucial sectors- technology and financial were pitted against the
major reasons for today?s drop. Nine out of ten sectors ended in the
red today. Utilities sector was the sole gainer.
After
lingering in the red for the entire day, The Dow Jones industrial
Average ended the day with a loss of 236 points at 11,147.53. The
Nasdaq Composite Index, finished lower by 59.55 points at 2,234.89.
S&P 500 finished lower by 29.01 points at 1,244.69.
Twenty-seven out of thirty Dow components ended in the red today.
Intel, American Express and Alcoa were the main Dow laggards.
In earnings news, Dow component Alcoa marked the start of second
quarter earnings season. The aluminum company reported a drop in
earnings due to high energy costs, but the results met Wall Street's
forecast.
In economic news, the Mortgage Bankers Association
indicated that mortgage applications had climbed a seasonally adjusted
7.5% last week compared with a week before, with total applications
down an unadjusted 18.1% for the week ended 4 July from the year-ago
period.
Cisco Systems weighed heavily on the technology sector
today. The stock fell to a new 52 week low after UBS said that Cisco
faces challenges due to slowing sales in the U.S. and Europe.
After an entire day of volatile trading, crude prices ended marginally
up today. Traders, worried about slowing demand, continued selling
despite a sharp drop in U.S. inventories and rising tensions in the
Middle East. Crude had dropped $9.25 over last two straight sessions.
Crude-oil futures for light sweet crude for August delivery today
closed at $136.05/barrel (higher by $0.01/barrel or 0.001%) on the New
York Mercantile Exchange. Last week, prices gained $5.08 (3.6%).
At the currency markets on Wednesday, the dollar traded mixed feeling
some modest pressure as foreign-exchange traders showed an appetite for
safe-haven currencies. News about Iran's missile tests earlier had put
the greenback on the defensive, prompting gains for the Japanese yen
and the Swiss franc. The U.S. dollar index which measures the greenback
against a basket of major currencies, fetched 72.61 from 72.98 late
Tuesday.
Trading volume was relatively light, with nearly 1.5
billion shares traded on the New York Stock Exchange and 969 million
exchanged on the Nasdaq. Decliners outran advancing issues on both
exchanges by more than 2 to 1.
For tomorrow, Texas Instruments
along with a host of other companies are due to report earnings before
tomorrow's opening bell. Economic data is minimal tomorrow. Focus will
be placed on the weekly jobless claims report, which is due before the
open.
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