Dow Jones Industrial growth may be changed by a sharp collapse

Dow Jones Industrial Average rising by small trading volumes

In brief: Bears and bulls calmed down after yesterday's bout, and began trading on the U.S. stock market rather quietly at low revs.

Dow Jones Industrial Average crossed the mark of 9,885 points. The growth of Dow Jones index is 0,72%. Today’s trading still remains dangerous for the Dow Jones Industrial. Stock trades in the U.S. on June 8 opened mostly higher after sell-leading indexes the previous day. June 7, at the background of a significant collapse of the euro against the dollar on U.S. trading floors was recorded indices to fall to their lowest in seven months marks.

Analysts warn that the global economic crisis will continue to affect financial markets and in the future. In addition, concerns persist about the level of unemployment in the United States, which, according to forecasts by the Federal Reserve System (FRS) the USA, will remain high. Influence on the movement of quotations and statements have Fed Chairman Ben Bernanke that the stabilization mechanism of 750 billion euros is enough to solve the debt problems of Greece, Spain and Portugal combined. However, the Fed chief suggested that European governments may have to devote to solve their financial problems even more money because the 750 billion euros until calmed investors. Some pressure on the quotes provided and the information that the international rating agency Fitch warned the British government about the “huge” challenge facing fiscal policy and public finances of the country. These challenges require a credible medium-term strategy for fiscal consolidation, including more rapid deficit reduction than was included in the plans of the previous Labor government. Against this background, the banking sector has been mixed dynamics quotes: just a positive consist bidding for such lending institutions like Bank of America (+0,9%), Citigroup (+1,24%) JP Morgan Chase (+0,9%) at the same time, cheaper stocks Goldman Sachs (-1,1%) and Morgan Stanley (-0,1%).

Upward momentum quotations demonstrate, and energy companies such as ExxonMobil and ConocoPhillips, the paper which went up at the opening of the trading session at 1,5% and 1,4% respectively, against a background of rising prices for “black gold”. A similar pattern is observed and quotations in the mining sector: Shares of aluminum group Alcoa and mededobyvayuschey Freeport-McMoRan Copper & Gold rose in price by 0,9% and 2% respectively. As part of the Dow 30 stocks, most companies are traded today in the “plus”: the paper is the second largest U.S. telecommunications company AT & T grew by 1%, the world’s largest soft drinks manufacturer Coca Cola Co. – By 0,7%, the U.S. corporation Kraft Foods – by 0,5%. At the moment of time S & P index rise on 1.53 points (0.11%) – up to 1051.63 points, while Nasdaq Composite Index dropped by 7.36 points (-0.34%) and amounted to 2,166.16 points.

Pavel Nurminen
2010-06-08 17:21, Economics.

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