Dow Jones Industrial Average: bulls spend a day of heavy losses

Dow Jones Industrial Average: hope dies last

In brief: Dow Jones may recover the loss with an increase in trading volume. It's not all blue-chip Dow Jones conducted the auction in the negative. Hope remains.

Dow Jones Industrial Average loses his balance under pressure from the bears. Bulls do not want to be active. Stock trades in the United States opened a decrease in the leading indices, although during the previous trading session witnessed the steady growth of quotations. Following bidding on May 27 2010. Dow Jones index rose by 284.54 points (2.85%) – up to 10,258.99 points.

Now the Dow Jones index fell by 63.34 points -63.34 (-0.62%) – up to 10,195.65 points, the index S & P – on 3.27 points (-0.32%) – up to 1,099.53 points, the index of Nasdaq – on 6.66 points (-0,3%) – up to 2,270.24 points. Players of the stock market in the first place followed events in the national economy. Released today a series of statistical data on the U.S. economy, which have left investors cold. In particular, before the trading session, a report was published the Ministry of trade of the country in terms of consumer incomes in April 2010. According to the report, the volume of consumer incomes in April compared with the previous month increased by 0,4%, the volume of consumer spending has not changed. Left data coincided with the expectations of experts. Even after the start of the trading session came the final figures for the University of Michigan index of consumer confidence in the U.S. in May this year The index rose to 73.6 points from the April value of 72.2 points. Meanwhile, analysts expect that the index would be 73.3 points. Some were worse than projected data of the Managers Association of Chicago (PMI) on an index of business activity in the U.S.. The index in May 2010. fell to 59.7 points from 63.8 points in the previous month, according to a report published today by the association. Meanwhile, analysts expect the figure for the period totaled 62 points. An impact on the trading session have news about mergers and acquisitions. Thus, it became known today that the British-Dutch oil company Royal Dutch / Shell has approved a deal to buy subsidiaries of American energy company, East Resources Inc., As well as most East Resources for 4.7 billion dollars Against this backdrop, shares of Royal Dutch / Shell traded on the New York Stock Exchange, have fallen in price on 0,1%. In general, among U.S. energy companies, today there is the negative dynamic quotes: stocks Exxon Mobil and Chevron lost in the price of 0,5% and 1.2% respectively, paper oil service Schlumberger Limited became cheaper by 4.1%. The interest of investors had also caused the news that British insurer Prudential confirmed media reports that it is discussing with the U.S. American International Group (AIG) possible change in the terms of the deal to buy AIG Asian business of life insurance – American International Assurance (AIA) . “We reaffirm that negotiations on the current status of the transaction with AIG have been and continue today” – reads the official report of the British company. Paper AIG lost in the price at the opening of the trading session 0.8%.

Anrey Torbinski
2010-05-28 15:12, Economics.

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