U.S. Stock Market: Dow Jones forecasts and past losses

The lack of optimism with the bulls do not give Dow Jones industrial average to conduct the auction in the green area

In brief: Dow Jones industrial average lost the support of bulls and found the shoulder of support among the bears. Forecast for the new week is not optimistic. Bears press the major U.S. stock market indexes.

Dow Jones industrial average could not be a hero of the new week. Now trading in the stock market does not pass, but the forecast for the rest of the week remains relatively negative. On Friday, May 28, the U.S. stock markets are putting an end not only by the outcome of the day and week, but ending the month as a whole since Monday 31 May in the U.S. will be closed on the occasion of the Day of Remembrance for the victims in all the battles of American soldiers.

This day was very busy, varied and mostly a painful macroeconomic data and geopolitical events. For example, personal consumption expenditures of U.S. citizens in April, for the first 7 months, did not increase with the expected increase of 0.3%, while personal incomes increased even though at 0.4% after 0.3% in March, but were lower than forecast 0.5%. In turn, the Chicago index of business activity in May gave way to much like the previous, and analysts predicted values. And the only index of consumer confidence in the University of Michigan in May slightly sweetened the pill, since surpassed its predecessor and preliminary and predict the level of experts. World and domestic news were also disappointing character. President Obama, angered not too successful so far attempts to neutralize the BP environmental catastrophe in the Gulf of Mexico, extended the moratorium on new works for the Deep Sea Drilling Project, thoroughly shaking at the same position of oil and gas companies. Saber-rattling faithful followers of the Juche threatened a wider war in the event of any frighten their actions by the world community. And to top it all off, the international rating agency Fitch lowered the credit rating of Spain by 1 point with retained its position since 2003, AAA to AA +, citing its decision likely increased pressure of the debt burden of the country on its prospects for economic growth. All of this together, especially the latter circumstance, to convince investors of the validity of its hidden fears about unreliability of Europe with all its attendant negative consequences for the world economy, in anticipation of prolonged weekend led to the fact that all major stock indexes finished the day in negative territory with varying degrees of success on the week. Monthly same result for the stock markets has brought the most serious for more than a year’s period of disappointment, once again reaffirming the long-standing reputation for disadvantaged stock May.

Dow Jones industrial average fell 122.36 points, or 1.19% to 10136.63 points, reduction per week was 0.6%, while the following month, he suffered most from the February 2009 loss of 7.9%, which became also the most failures in May with 1940 Index Standard & Poor’s 500 fell 13.65 points, or 1.24%, closing at 1089.41 points, higher for the week amounted to 0.2%, the monthly loss in the same 8.2% was the highest since February 2009 and the worst result for May 1962 . The Nasdaq Composite Index fell 20.64 points, or 0.91% to the value of 2257.04 points, adding in the week 1.3% in doing so he suffered the biggest in November 2008 monthly loss of 8.3%, to note the most unfortunate outcome of the May for the last 10 years. “Blue chips” Top-30, the absolute majority (27) finished in the red zone. The most affected on the bidding results were Walt Disney (-2.8%), Bank of America (-2.7%), 3M (-2.6%), Cisco Systems (-2.2%), Caterpillar (-2.1%) and Home Depot (-2.0 %), representing virtually all the sectoral diversity of the American economy. The small gain accompanied only three focused on mass consumer companies – Coca-Cola (+0.3%), Procter & Gamble (+0.2%) and Merck (+0.2%).

Supplier popular computer game programs Take-Two Interactive Software jumped by 7.8% due to increased valuation of recommendatory its shares from experts ThinkEquity LLC. Shares one of the world’s leading computer manufacturers, Apple grew by 1.5% due to further expansion in sales of super popular portable iPad in 6 European countries, Japan, Australia and Canada, after one million units has been implemented in U.S. sales debut in April. Major U.S. health insurer Amerigroup gained 1.6% thanks to increasing the rating of its shares to “neutral” to “buy” by analysts Deutsche Bank AG. The second-largest U.S. manufacturer of tobacco products Reynolds American lost 1% due to the planned closure of several of its businesses in North Carolina and Puerto Rico. The world’s leading developer of solutions for the security of corporate computer networks Blue Coat Systems collapsed 25.6%, revising quarterly revenue forecast in the direction of greater reduction than had been predicted by analysts on Wall Street. The price of gold futures for delivery in June on the basis of trading on the COMEX rose 30 cents to the value of 1212.20 dollars per troy ounce. Gold residing most of the day in the negative territory by the end of bidding still has made a symbolic win under the combined effects of unfavorable data, and news. The cost of the June gold futures rose by 3.1% per week and 3% by the end of May. The price of futures for petroleum of mark Light with delivery in July up to now trades on the NYMEX fell by 58 cents, or 0.8% to 73.97 dollars per barrel. Oil as a result of fairly volatile session lost after the decline in the price of the credit rating of Spain and renewed in connection with this concern about the pace of global recovery and the prospects for energy demand. Although obtained in the last week of gains of 5.6%, the price of oil fell in May by 14%.

Ukrainian Globalist
2010-05-31 13:35, Economics.

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One comment к “U.S. Stock Market: Dow Jones forecasts and past losses”

  1. JK Says:

    If you look at the Dow Jones Chart for pat 12 months and 18 months
    You can easily see the speculator drove the frail gains in very small volume.

    this type of movement is due for correction.
    What it meant is probably most of big investors did not return into the market since the plunge of 2008.

    When only few investors are driving prices up….the broad market do not follow.

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