Dow Jones Industrial Average: the fall continues, the collapse may begin by the end of trades

Dow Jones Industrial Average falls on the background of the bad reports

In brief: The level of general support for Dow Jones from the Bears relentlessly falls. Investors continue to withdraw from the market.

Data on economic statistics, the U.S. continues to oppress bulls Dow Jones Industrial Average. Trading volumes remained low. Dow index is at around 10,130.21 points. Dow Jones fell by -42.32 points or -0.42% since the start of trading the U.S. stock market. Now look at the statistics:

U.S. Department of Commerce recorded a decline in retail sales in May at 1.2% despite forecasts analysts predict rise by 0,2%. Excluding vehicle sales retail pinched by 1,1%, while analysts expect a minimum increase of 0,1%. Blamed falling sales of steel materials, where sales fell by 9,3% after the expiration of tax incentives for purchasers of housing. Actually, nothing strange here. Program to recover $ 8,000 of previously paid taxes to those who buy property for the first time and $ 6,500 to purchasers of housing for the second time ended 30 April. Almost half of the clients real estate agencies in April were recipients, and when in May, they dropped out volumes of construction and, accordingly, demand for construction and decoration materials decreased. It’s amazing that less than 10%. In addition to building materials in May became cheaper oil and gasoline, which is good for the economy as a whole except for energy companies. When discarded energy and building materials for other segments of the retail market will increase by 0,1%. Taking into account the revision of the April retail expansion into the large side from 0,4% to 0,6% in May, data is quite disappointing not call. As if to prove the thesis about the gradual improvement of the general atmosphere in the consumer market in the U.S. University of Michigan index of sentimental in early June rose to 75.5 points versus 73.6 units in May. This is the maximum value of the index mood since January of 2008. Interestingly, if in May, the respondents evaluated the rate of inflation over the next 12 months at 3.2%, in the first half of June, they have lowered its forecast to 2,7%. Thus, monetary authorities again remains simple choice, drying rate and not to think about their change at least until the end of the year. Against this backdrop, investors may again have appetite for risk.

Ukrainian Globalist
2010-06-11 16:30, Economics.

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