DJIA: brand new day brings new collapse

DJIA along with the other U.S. stock indexes fell again yesterday

In brief: DJIA fell again yesterday on the background of a weak data from labor market.

The Dow Jones Industrial Average along with the other U.S. stock indexes ended the day with another fall on the background of a weak data from the labor market yesterday. According to ADP, this June the private sector of the U.S. economy created only 13 thousand new jobsites although the analysts predicted there would be approximately 59 thousand of jobsites.

The mortgage crediting index rose by 8.8% during last week. Index of business activity in the Chicago manufacturing sector met the market’s expectation, falling by 0.8 points compared to the previous month and so being now at 59.1 points. As a result, the index of wide market S&P500 fell by 1,1% and is on the mark at 1,030.71 points, the index of blue-chip Dow fell 0.98% to the value of 9774.02 points. The securities of IT-companies yesterday looked worse market. For example, Cisco securities fell in price on 1,43%, Hewlett-Packard fell in price on 2,3%, Intel dropped in price by 1,72%, while IBM and Microsoft have suffered losses in 1,29% of the cost. Financial companies suffered difficulties too. Bank of America fell to 1,37%, JPMorgan Chase fell in price on 1,21%, and the American Express securities declined in price by 0,97%. The Asian indexes keep falling for the third day in a row on the background of the fall of business activity in the manufacturing sector in China. Nikkei225 Japanese index falls to 1.94%, China Shanghai Composite falls 0.76%, Korea’s Kospi is lower by 0.58%, and the Australian All Ordinaries – on 1,3%. The composite index MSCI Asia loses 0,84%. The index of business activity in the manufacturing sector in China fell from 53.9 points the previous month to 52.1 points in June. Analysts had expected a decline to 53.2 points. According to the Central Bank of Japan, Tankan index rose in June by 15 basis points to 1, which is the maximum for the past two years, a value exceeding analysts’ expectations of -3 points. At the same time, the index of business activity in non-productive sector of Japan’s Tankan was also better than expected at -8 points and amounted to -5 points.

Olga Bespalova
2010-07-01 16:01, Economics.

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