Pessimism of investors and stock market crash vs the DJIA bullish trend

Consumers have lost a whole week because of weak S & P 500 and DJIA

In brief: Nasdaq Composite, Standard & Poor's 500 and the DJIA will begin trading on the stock market very carefully today.

Dow Jones Industrial Average will start bidding with minus about 0,5%, but by mid-session support for the Dow index would grow and DJIA will direct growth. Thursday, July 1 main U.S. stock market indexes have completed the session in the red area. Attention players fully focused on the state of the U.S. market, Europe’s problems on the backburner: single European currency strengthened against the dollar by more than 2%.

Left statistical data, is not best describe the state of the labor market and industrial areas have increased fears of a possible manifestation of the second round of recession. Thus, the number of primary applications from unemployed has increased by 15 thousands, while the expected decrease of 5 thousand, and the index of economic conditions in manufacturing ISM fell more than forecast. In addition, expectations are scheduled for publication in the Friday data also did not differ optimism: is a decline in employment in the non-agricultural sector and improve the overall level of unemployment. As a result of trades barometer of blue chips, the Dow sank 0.42% to the value of 9732.53 points, more “broad” index of S & P 500 has become “easier” to 0,32% and reached 1 027.37 points. The index is fairly high-tech stocks Nasdaq “lost” to 0,37% up to 2 101.36 points.

Crude oil futures mark Light for August delivery fell $ 2.68 to $ 72.95 per barrel. As a result of trading on the COMEX Gold futures for August delivery dropped in price by $ 39.2 to $ 1 206.7 per troy ounce. The dollar weakened against the euro and Japanese yen. Yield of a decade of Treasury bonds fell from 2.95% to 2.93%. As part of the Dow stocks of 23 firms from 30 showed a decline from Hewlett-Packard, Merck, United Technologies and JPMorgan Chase in the first row. Reducing the price of gold has led to what is a leader in the fall were companies specializing in precious metal extraction, which in this case, one of the few in the second quarter, firmly holding their positions. So, quotes Barrick Gold fell 5.2%, while the market capitalization of Newmont Mining fell by 4,5%. Also out of work were representatives of the health sector after the largest U.S. health insurer WellPoint said that he could lose about $ 100 million on the market of individual insurance in California. Paper WellPoint became cheaper by 2.3%, while the quotations UnitedHealth and Humana declined by 1,9% and 2,4% respectively. Giant pharmaceutical sector Merck shortened from its asset 1,5%, after it became clear that the Office of Quality Monitoring Food and Drug Administration approved a generic version of its drug Pepcid, developed by Lupin Pharmaceuticals. Automakers Ford managed to bring to the course of trade a portion of the positive, thanks to the June sales increased by 15%. Ford shares climbed 4.9%. Also in positive territory were company courier service United Parcel Service and FedEx, which securities rating was upgraded by analysts UBS from “neutral” to “buy”. Company added to its asset 2% and 2.7% respectively.

Anrey Torbinski
2010-07-02 12:49, Economics.

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