U.S. stocks: Dow Jones Industrial is close to the edge of abyss today

Dow Jones Industrial approaches the minima

In brief: Dow Jones Industrial Average is under permanent pressure from the bears. Bulish shoulder of support is weak.

Dow Jones Industrial Average is sinking in the swamp of market volatility. The level of the U.S. stock market risk is growing rapidly. U.S. stocks decline by the opening session, led by technology shares following a downgrade to International Game Technology, from Goldman Sachs Group Inc, which reduced its recommendation from “Neutral” to “Sell”, moreover, the housing sector in the U.S. witnessed a severe slump throughout the past month, causing pessimism to dominate markets. The housing starts slumped in May by 10.0% while the future demand on houses as indicated by the building permit report witnessed a drop by 5.9% during the same month.

The slide in the housing sector led investors to target low yielding assets and moving away from risky investments such as stocks and high yielding assets, accordingly, the U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, inclined on the daily scale, reaching 86.14, compared with the opening levels of 86.07. Gold retreated due to the inverse relationship it has with the dollar, to trade at $1230.80 an ounce, compared with the opening levels of $1233.87 an ounce, moreover, oil declined to trade at $76.72 a barrel, from the opening levels of $77.09 a barrel, – reports Forexpros.

As for stocks, the most sectors that shed points in the DJIA Index were the Basic Materials, Consumer Services and Consumer Goods Shares respectively, meanwhile the sectors that retreated the most in the S&P 500 index were the Consumer Services, Basic Materials and Consumer Goods shares respectively, finally the NASDAQ Composite sectors that led the decline were the Telecommunications, Consumer Goods and Industrial shares respectively. At 10:49 EST, The Dow Jones Industrial Average traded lower by – -47.99 points or 0.46% at reaching 10,356.78 levels, while the S&P 500 index traded at 1108.95 as it shed 6.28 points or 0.56 percent, meanwhile the NASDAQ Composite index lost 13.23 points or 0.57% to trade at 2292.65 levels.

Ukrainian Globalist
2010-06-16 14:57, Economics.

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