Dow Jones Industrial Average lost the last chances for growth, bulls are in panic

Dow Jones Industrial falls into a state of suspended animation

In brief: DJIA began to decline in early trading, losses are increased every 10 minutes. Bulls fail to consider the Dow Jones and supported by NASDAQ.

DJIA is at 10,143.99 points mark. Losses for the Dow Jones Industrial amounted -215.32 (-2.08%). The negative macroeconomic statistics and falling sales of large banks moved the market in the red zone. The Americans have no confidence in the future, as evidenced by a sharp decline the prior index of consumer confidence in the University of Michigan: the index fell to 66.5 points from 76 points in June. At the same time, purified the consumer price index rose by 0,2% in June, surpassing forecasts by 0,1%. With respect to bank reporting, then, despite the fact that she was better than expected, banks still fared poorly compared to last year.

Indicator of blue chips, the Dow blushed at 1.93% to the value 10159 points, the index of wide market S & P 500 lost 2.22% and traded at 1,072.18 points, and Nasdaq index of technology companies retreated 2.34% to a mark 2196 points in the first half of trading. Currency pair EUR / USD fell to 0,24% up to 1,292 marks. Yields on U.S. 10-year government bond fell below the “psychological” level of 3% and amounts to 2,93%. Bank of America and Citigroup today reported for the second quarter. Compared with the same period last year, Citigroup earnings fell by a third, and earnings per share to 9 cents from 49 cents. CEO Citigroup said low demand for loans in the domestic market, the Bank’s loan portfolio decreased by approximately 5% compared with a quarter. At the same time, lending in Asia and Latin America has shown great improvement. The bank reduced the reserve for bad debts by 22%. The main risks are the development of adverse macroeconomic situation and reinvestment risk. Quotes Citigroup dropped by 3,85%.

At Bank of America results are somewhat better. Revenues in the second quarter fell “only” 11% compared to 2 square meters. 2009, and earnings per share – 18%. Provision for bad debts decreased by $ 1.7 billion Bank of America shares lost 8.32% of market value. Another U.S. bank today on the street festival. Goldman Sachs have resolved all the friction with the regulators. The Bank will pay a fine of $ 550 million, which equals approximately one week revenue from trading. The stock price rose by 2.54%. General Electric also not live up to expectations of analysts. In the second quarter earnings decreased by 4,25% compared with 2 blocks last year, and costs decreased by 5.3%. GE recorded diluted earnings per share of 28 cents compared with 25 cents in 2 square. 2009 Rating agency Standard & Poor noted that the results would not affect the credit rating company. Shares traded with a decrease to 3.74%. Pharmaceutical company Vivus fallen more than 50% after it has received approval from the Office of the Food and Drug Administration to release funds from obesity. Investment rating was lowered immediately by two investment companies to “neutral” and “worse than the market.”

Ukrainian Globalist
2010-07-16 17:19, Economics.

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