Dow Jones Industrial Average goes into a deep depression

Dow Jones Industrial Average has deceived investors and do not give up hope

In brief: Dow Jones Industrial Average started trading in a very bad mood, closer to the middle of trading, the index dropped more than 1%, the situation continues to deteriorate.

Dow Jones Industrial Average had buried the hopes of investors and demonstrated to all that the American market is not close to recovery. Today, May 14, major indexes of U.S. stock market showed a negative trend and uncertainty in the progressive movement. Dow Jones Industrial Average was frank frustration of the day. There is still the main pressure on the markets have debt problems of the European Union. Published today, macroeconomic indicators, most of which were better than analysts’ forecasts, failed to reverse the pessimistic bidders.

For example, retail sales in April rose by 0.4%, while the expected rate increase by 0,2%, industrial production during the period which added 0.8% with an average growth forecast at 0.6%. It should be noted that the main contribution to the increase in retail sales made by sellers of cars and retailers of building materials. A preliminary index of consumer confidence in the University of Michigan in May totaled 73.3 points, slightly before it reached the expected level of 73.5 points. Inventories in March rose by 0,4%, which coincided with forecasts of analysts. By that time barometer of blue chips, the Dow fell to 2.124% to the value of 10 553.92 points, more “broad” index of S & P 500 decreased by 2.548% and reached 1 127.95 points. The index is fairly high-tech stocks Nasdaq collapsed 2.851% up to 2 326.1 points. Shares of the second-largest producer of graphics processors Nvidia lost 12,9% of the cost. The company expects falling sales in the second quarter with $ 1 billion to $ 950 million less than analysts predicted a significant reduction in sales to $ 991 million. Paper supermarket operator JC Penney “thinner” at 2,98%. Despite the fact that profits in the first quarter increased more than doubled, reaching $ 60 million, specialists reported that the annual income does not exceed $ 1.64 per share, with an average forecast of analysts of $ 1.66 on the paper. The U.S. Senate today approved an amendment that would allow the Fed to impose limits on the size of the charges levied by major banks for servicing of payment cards. Against this backdrop, shares of Visa have fallen to 10.29%, quotes MasterCard become “easier” to 7,47%.

The market capitalization of the largest U.S. issuers of debit cards is also not slow to decline due to new restrictions. Thus, the paper Bank of America and Wells Fargo lost 3,85% and 3,02% of the value, respectively, and quotes JPMorgan Chase dropped to 3.38%. Shares of American leader in production of aluminum Alcoa weakened by 3.59% on lower metals prices and a market capitalization of the largest U.S. oil company Exxon Mobil fell by 2,47% due to decline in the value of “black gold”. Quotes of the second-largest developer of software for mainframe CA dropped to 6,9% after the company sounded forecast for annual sales, which fell below analysts’ expectations. By 20:18 Moscow time futures for Brent crude for delivery in July cheaper at 3.556% to $ 78.534 per barrel. Gold prices rose to 0.334% up to $ 1 233.3 per troy ounce. The U.S. currency strengthened against the euro at 1.174% and fell against the Japanese yen to 0.960%.

Ukrainian Globalist
2010-05-14 19:29, Economics.

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