Good Dow Jones is dead Dow Jones

Dow Jones Industrial Average can't firmly stand on its feet

In brief: Dow Jones Industrial Average on all fours trying to get away from the market, but as long as the index can not. The overall picture of stock trading in the U.S. smells negative.

Dow Jones can not fight with a bear trend. The overall negative mood of investors the U.S. stock market is reinforced efforts by some speculators to bring Dow Jones Industrial Average ended with a plus not a fiasco, though unable to bring the index to make sure a plus. Today, the American stock market in the first half of the trading session demonstrates a sure retreat, surrounded on all sides by an external negative.

The threat of hostilities on the Korean peninsula, where North Korean leader Kim Jong Il ordered the reduction of troops in combat readiness, broke the Asian indexes in Europe, dominated by oppressive attitudes against the measures supported by one of the banks taken by Spain. In the investment environment soar numerous comments of major economists and analysts on what it all threatens the global economy. A well-known asset manager M. El-Erian of Pimco said that the news from Spain confirms “contagious” Greek debt crisis. Indeed, fears of contagion in this situation is appropriate. The fall of the market was compounded by the growth rate of Libor – in particular, and due to this circumstance, the financial sector were large-scale sale. Left at 18:00 Moscow time data, which showed a significant improvement in consumer confidence in the U.S. in May (the index rose from 57.9 points to 63.3 points in prediction of 59 points), were virtually ignored by the market. By 20:11 Moscow time the index broad-market Standard & Poor’s 500 is trading with a cut of 1.56% on a mark to 1,056.87 points, the light blue-chip Dow Jones Industrial Average lost 1.54% to a level of 9911.27 points, while the index high-tech Nasdaq Composite traded in the red at 1.56% on a mark to 2,179.07 points. The dollar index is trading in positive territory at 1.1% and the gold adds 0.7%, while silver lost 0.9%, industrial metals (copper, aluminum, nickel) and energy (oil, gasoline) are traded on the highest minus the wake of mass escape investors away from risky assets. In the composition of the index of blue chips have no common source of growth. More than 2% of the shares lose Alcoa, American Express, Bank of America, Chevron, DuPont, GE, Travelers, and others.

The banking sector was among the outsiders bidding on the background of the fact that Libor rate reached a peak in July last year. Citigroup shares have fallen in price on 1,8%, Bofa lost 1,9%. Insurer American International Group collapsed in 4,9% after the release of information that his former unit Reinsurance Transatlantic Holdings filed a lawsuit against the company. Falling oil below the mark at $ 68 per barrel and the collapse of industrial metals 3-5% have left no chance of commodity stocks – the largest aluminum producer Alcoa lost 1,9%, Exxon Mobil traded in a minus on 2,3%. One of the few exceptions was the third-largest steel maker AK Steel Holding – shares rose by 5,6% after analysts Bank of America upgraded the rating of “good market” to “neutral.” Of the abnormal movements in the market – shares of biopharmaceutical company Neurocrine Biosciences shot at 31,9% thanks to its statement on the favorable results of clinical trials of one of the experimental drug.

Pavel Migin
2010-05-25 17:13, Economics.

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