Hungary and the problem of employment has collapsed Dow Jones Industrial Average

Dow Jones gave bears its heart

In brief: Dow Jones Industrial Average continued its fall against the backdrop of negative news out of Hungary and on the background of the local statistics.

Dow Jones Industrial Average lost support and support for the bulls. Dow Jones got to know the power of bearish pack yesterday. On Friday, June 4, U.S. stock and commodity markets nervously awaited largely determines the further disposition provided by the Ministry of Labor’s package of statistics on the labor market in May, the central place where the change took employment in the non-agricultural sector of the country.

The published figures have caused a great widespread disillusionment. Not only does the addition of a payroll 431 thousand people turned out much weaker than the projected 540 thousand, besides, it became clear that the lion’s share of them, namely, 411 thousand people filled the temporary and part-time schedule jobs, organized in order to of the U.S. Census. Thus, the real growth of full employment was only 20 thousand people. The private sector in this case “fit of generosity” in May for all categories of workers only to 41 thousand new seats. At the same time, the unemployment rate fell to 9.7% (expected 9.8%) with 9.9% in April, and facilitated this loss of 322 thousand people listed by the labor reserves of the country. The average workweek grew by 6 minutes to 34.2 hours from 34.1 hours in April, and average hourly earnings rose by 0.3% after the rate unchanged in the previous month. World background also was not conducive to successful trading. Confirming the worst fears investors about the “contagion” feebleness of the budget, do not play a significant role in Europe and the Americans had hitherto known only by their famous relatives of George Soros, Hungary joined the ranks of rogue states and has announced the likely developments in the Greek key. Not a member of the euro area, but a member of the European Union, Hungary is likely to become another object of solidarity headache and any attempts of the European financial community. In connection with the “rosy” outlook euro has fallen off to a four-year minimum 1.2 mark against the dollar. The combination of these factors is extremely negatively affected the course of trading and negative dynamics dominated throughout the day, by the end of which all the major stock indexes thoroughly sagged. At the same time the Dow Jones and S & P 500 fell to the lowest level since February 8, the first of them lost more than 300 points the third time this year. Dow Jones industrial average fell 323.31 points or 3.15% to 9931.97 points, reducing per week was 2.0%. Index Standard & Poor’s 500 fell 37.95 points, or 3.44%, closing at 1064.88 points, a loss for the week amounted to 2.3%. The Nasdaq Composite Index fell 83.86 points or 3.64% to the value of 2219.17 points, within a week older than 1.7%. Final results of all to a single “blue chips” in the top division of the American economy Tor-30 on Friday took on a crimson color. The main outsiders trades in light of U.S. statistics on employment and a pessimistic outlook on prospects for the global economy began to Caterpillar (-5.5%), American Express (-5.3%), Boeing (-4.9%), Alcoa (-4.7%) and General Electric (- 4.5%). The collapse of oil prices had a knock on the energy industry’s leading companies Chevron and Exxon mobil, whose shares fell respectively by 3.6% and 3.3%. Actions leading manufacturer of food ingredients for the dietary and baby foods Martek Biosciences soared by 16.2% because the company received in the 1 st quarter revenues were significantly higher than peer review. The major producer of equipment for liquefied natural gas Cheniere Energy has won 10.6%, after announcing expanding production capacity at the terminal in Louisiana. The supplier of equipment for mobile data Comtech Telecommunications grew by 6.4% due to quarterly earnings, far surpassed the consensus forecast of the analytical pool in Bloomberg. The second largest U.S. publicly traded engineering company Jacobs Engineering Group lost 8.2%, announcing the acquisition of TechTeam Government Solutions for 59 million dollars. The largest U.S. developer of software products and provider of Internet services for medical Athenahealth fell by 8.7% due to target a broad reorganization of senior management.

The price of gold futures for delivery in June on the basis of trading on the COMEX rose by 7.90 dollars or 0.7% to the value of 1216.20 dollars per troy ounce. Investment attractiveness of gold as a safe haven and alternative investments has grown due to unfulfilled expectations regarding the U.S. labor market and the collapse of the euro as a result of another new financial misfortunes in Europe. Compared with the final level of last Friday the June futures on gold have added to the price of 0.3%. The price of futures for petroleum of mark Light with delivery in July on the basis of trading on the NYMEX fell by 3.10 dollars or 4.2% to 71.51 dollars per barrel. Oil has suffered the most significant daily loss since 4 February, when the price drop was 5%, against a background of distressing data on employment in the U.S. and expanding the list of potential European bankrupts. Following is a shortened week of “black gold” has lost in value 3.3%.

Ukrainian Globalist
2010-06-07 15:21, Economics.

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