Dow Jones Industrial Average: the tragic history repeated

Dow Jones manages not to fall below the mark boundary

In brief: Dow Jones Industrial Average and Standard & Poor's 500 are under massive pressure from the bears. Analysts believe in Dow Jones, but investors were not ready.

Dow Jones Industrial Average continues to seek a foothold in the background of turmoil and instability in high-tech sectors of the U.S. economy. Market analysts believe in the power and strength of Dow Jones, but the reaction from the traders hadn’t come. Stock trades in the U.S. opened a small increase in the leading index. In the absence of statistics on the U.S. economy to the forefront of the news from Europe. On the eve of world capital markets is a new wave of uncertainty in connection with the debt problems of the eurozone countries and the potential impact of these problems on the pace of U.S. economic growth. Investors got rid of almost all assets, except for U.S.

Treasury bonds whose value has increased by more than 1 percentage point. U.S. stock indexes dropped by almost 4%: the Dow up to the auction on May 20 fell by 3,6%, S & P 500 – by 3,9%. Key indicators have entered the “area correction” – from recent highs, they have fallen more than 10%. In general, stock markets have been a sell-off of risky assets. In this regard, trading floors were closed in Japan today, reduced Nikkei index by 2,5%. In this week’s reduction in the Japanese stock exchange was the most significant indicator in January 2009. and amounted to 6,5%. European stock markets fell to 7-month low, the British FTSE index fell below 5000 points. Today, however, it became known that the lower and upper houses of parliament in Germany approved the proportion of its participation in joint stabilization mechanism of the EU and the IMF totaling 750 billion Euros – it will be from 123 to 147.3 billion euros. This brings some certainty to the economic prospects of a united Europe, which makes investors optimistic. Against this background, plus traded shares of leading U.S. banks: paper Bank of America, Citigroup and JPMorgan Chase & Co. grew by 1,5%, 1,7% and 3,2% respectively. Shares of the operator of credit cards American Express Co. added to the price of 0,5%. Players follow the stock market and corporate news. American clothing retailer Gap Inc. reported on the quarterly financial results, which were slightly above forecasts, against this backdrop that the company’s shares went up by 0,8%. The situation is similar with the Securities and manufacturer of athletic footwear Foot Locker (+2,7%), which provided a convincing quarterly reporting.

Ukrainian Globalist
2010-05-21 18:32, Economics.

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