Dow Jones Industrial Average: the last days of Pompeii

Friday was black for the Dow Jones Industrial Average

In brief: New issues of European and U.S. economies have led to falling U.S. stock market, especially, Dow Jones.

Dow Jones Industrial Average was unable to overcome the bearish trend in yesterday’s auction. Dow Jones has shown a record decline. Dow Jones industrial average: 9931.97 points (-323.31 points) -3.15%, Nasdaq Composite: 2219.17 points (-83.86 points) -3.64%, S & P 500: 1064.88 points (-37.95 points) -3.44%.

On Friday, June 4, the American stock market in the first half of the trading session demonstrates a profound retreat on the background of frustration from published data on the labor market in May. Although at first glance, statistics seem not so bad – the unemployment rate declined from 9,9% to 9,7%, while employment in non-agricultural industries increased by 431 thousand – the most powerful way for more than a decade, at more closely the market situation Labour did not inspire much optimism. The main factor in the growth of employment has become a large-scale hiring of temporary staff to conduct a census of the population – 411 thousand, while private sector employment increased only slightly – by only 41 thousand people, with reason for the decline in unemployment was the likely, reduction of workforce (at 322 thousand). It is clear that the market is not so blind to overlook such important points, so the fate of today’s trading was sealed at the time of publication of data on the labor market. The external background for the U.S. session today is very gloomy: Asian indexes mostly fell, and in Europe markets have collapsed under the big influence of the same labor market data and disappointing news out of Hungary (the country’s maturing financial crisis similar to the Greek – the new government has found public finances in much worse condition than I expected).

The dollar index adds 1% gold adds 0,8%, silver lost 2%, industrial metals and energy (except for natural gas) are traded in the red by 2-3%. Index of blue chips falling Whole; in the red by more than 3% of the shares traded American express, Boeing, Caterpillar, GE, International Paper and others. Branches in the context of the S & P 500 market look worse than the industrial and commodity sectors (except oil and gas, which now looks a bit better than the market). Recruitment companies went into deep negative against the background of published data on the labor market. Monster Worldwide shares have fallen by 6,7%, and Manpower – by 3,4%. The second-largest U.S. steel producer US Steel left in a minus on 5,2% after Goldman Sachs analyst removed his stock from its list of “buy an addiction.” The world’s largest bank-Custodian Bank of New York Mellon lost 3% of market value against the News of plans to hold IPO of $ 700 million raised funds needed for the bank to purchase units of PNC Financial Services Group. Shares of Texas oilman Anadarko Petroleum prices increased by 2,3% on analysts’ comments FBR Capital Markets on a “good point to enter the market” for his papers.

Anrey Torbinski
2010-06-05 18:34, Economics.

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