Dow Jones Industrial Average may reach maximum at the end of bidding

Dow Jones Industrial Average makes bulls nervous because of permanent decline today

In brief: Most buyers oversees trading on the U.S. stock market from the sidelines. Dow Jones can not get out of the red zone.

Dow Jones Industrial Average touched the green zone and began to fall again. Bulls are not going to join the battle yet. On Wednesday, June 16, key stock indexes of the United States by mid trading session reside on the negative territory, and Nasdaq Composite “floats” with slight changes. Be happy there is nothing particularly investors, macroeconomic statistics for the most part did not bring a positive. The number of homes started construction in May dropped from 672 thousand to 593 thousand, while expected to drop to 650 thousand (10% reduction rate was the highest since March 2009 due to the expiration of tax concessions by the Government).

Moreover, oil reserves in the last week rose by 1.7 million barrels, although most experts forecast a decrease of 1.2 million barrels. Only data on the volume of industrial production index is allowed in a small minus. In May, industrial output increased by 1,2%, which is 0,3% higher than the forecast value and 0,4% growth recorded the previous month. It should be noted that due to increased production in the automotive and residential sectors, the overall industrial output increased by a maximum in August of last year amount. At the time the index a broad market Standard & Poor’s 500 is trading with a decrease to 0.17% on a mark to 1,113.36 points, the light blue-chip Dow Jones Industrial Average decreased by 0.23% to a level of 10,380.43 points and the index of high-tech industries Nasdaq Composite is trading at a slight minus on 0,01% at around 2,305.59 points. Despite the fact that today the U.S. company FedEx reported an income in the fourth quarter ending May 31 with a $ 696 million, or $ 1.33 per share, compared with a loss of $ 849 million, or $ 2.82 per share, a year ago, forecasts for the current financial year is not pleased with the bidders and the paper by mid-session FedEx retreated to 2.12%. It is expected that annual profit FedEx will be $ 4,4 – $ 5 per paper, while analysts expected a profit of $ 5.07 per share. Against the background of negative data on the construction sector to U.S. quotes national builder Hovnanian Enterprises and the largest U.S. retailer of home Home Depot dropped to 2,44% and 1,21% respectively. The manufacturer of slot machines International Game Technology lost 4.44% of market capitalization, after Goldman Sachs analyst lowered his rating of shares to “neutral” to “sell”. Representatives of the company’s health sector Genoptix reported that they expect earnings in the second quarter at 30 cents per share. These figures have disappointed analysts expected earnings of 40 cents per paper, and as a consequence, quotes Genoptix went in at minus 21.65%. By the middle of today’s trading session divided into two main outsider trading – Fannie Mae and Freddie Mac, retreated to 53.06% and 53.14% respectively. Today, the market received information that the Federal Housing Financing Agency (FHFA) has instructed the U.S. mortgage agencies Fannie Mae and Freddie Mac to delisting of common and preferred shares on the NYSE and other U.S. exchanges. Due to the increase in industrial output in May quotes General Electric climbed to 1.24%.

Igor Tringlers
2010-06-17 13:33, Economics.

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