Dow Jones Industrial Average fell under the control of mad bears

Dow Jones Industrial Average was much weaker than investors expected

In brief: Dow Jones Industrial Average in the company of other indices of U.S. stock market went into a serious negative and could not recover.

On Thursday, May 13, major indexes of U.S. stock market in the first half of the trades showed a negative trend. Dow Jones Industrial Average suffered a significant correction from the bears. Bulls were unable to help the Dow Jones because of the negative statistics. Statistics on the labor market, published today, was worse than expected. Thus, the number of primary applications for unemployment benefits last week amounted to 444 thousand, as the previous week, while the expected decline to 440 thousand.

Specials paper were representatives of the financial sector after it became known that federal prosecutors intend to verify a transaction largest banks on sales of mortgage securities to investors. After the middle of trading blue chips and the Dow Jones Industrial Average fell by 0.153% to the value of 10 880.27 points, more than a “broad” index of S & P 500 declined by 0,309% and reached 1 168.05 points. The index is fairly high-tech stocks Nasdaq shortened 0.501% up to 2 412.87 points. Equities world’s largest network equipment Cisco Systems “thinner” at 4.54%. According to the report of the company, net profit for its third fiscal quarter, with the end of May 1 increased by 63% to 37 cents per share. Nevertheless, the executive director, Cisco has expressed doubts about the sustainability of recovery rates of American and European economies. Oil industry also failed to increase the market capitalization on the background of declining prices for “black gold”. Thus, the paper Chevron became “easier” to 0,94%. Quotes Sybase jumped 14.61% after it became known that the German software developer SAP will acquire U.S. rival, which specializes in developing IT solutions for businesses. The transaction will be $ 5.8 billion, thus Sybase stockholders will receive $ 65 for each share – up 56% over the closing price on May 11. Shares of U.S. seller of organic food Whole Foods Market “recovered” to 5,84%. The company reported a quarterly profit that exceeded analysts’ expectations and raised its forecast for annual sales. Securities of Citigroup and JPMorgan Chase lost 1,42% and 0,79% of the value, respectively, while Morgan Stanley has managed to increase market capitalization at 1.37% against the background of increasing FBR Capital Markets analysts rating the company’s shares to “better market.”

Ukrainian Globalist
2010-05-13 20:35, Economics.

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