The U.S. indexes started the session with a sharp drop on Monday after the prospect of lowering the credit rating of Italy reinforce fears about the state of the global economy. The international rating agency Standard & Poor’s said late last week that Italy’s credit rating may be reduced if the country fails to limit accumulation of new debt and accelerate economic growth. Uncertainty causes severe volatility in the market, says Kevin Gids, an analyst at Morgan Keegan & Co. Dow Jones Industrial Average fell 1.08 percent to 12,377 points. Standard & Poor’s 500 lost 1.23 percent to 1317 points *. Among 10 industry groups of the index, the least present companies in the energy sector.
Nasdaq Composite dividing by 1.67 percent to 2756 points. In New York, U.S. futures for light sweet crude for delivery in July fell 2.97 percent to 97.13 dollars per barrel.

The last Thursday – the day before the earthquake in Japan, the index Dow Jones Industrial Average (DJIA) suffered its biggest daily decline (-1.9 percent) since August. In Friday’s session, the index of 30 leading U.S. companies rose 0.5 percent, but on Monday almost deleted this increase (-0.4%), and on Tuesday dropped by 1.2 percent. The markets in the U.S. fell under the influence of fears about jobs, debt and the situation of Spain in Saudi Arabia. But what does this mean for the small investor asks Brett Arends at The Wall Street Journal. Wonder for a day I had it, the ability to purchase or just a little cloud an otherwise sunny horizon? And whether it was a sign of impending danger?
The next move of the market is always a mystery. He can jump with 500 points to fall by as much or remain unchanged. You must day market volatility to lead our financial decisions. All this may be passed storm. However, there are reasons for concern about what happened, although I might be unnecessarily cautious. When the stock market fall, I love to look for reasons why it pays to buy them cheaper, “he writes. Here are 5 reasons that despite the fall in DJIA of 228 points make him to be cautious.
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The U.S. indexes took up uncertainly at the start of today’s session, as increases in DuPont and Exxon Mobile brought Dow Jones Industrial Average in positive territory for the year. Shortly after the beginning of the session showed that purchases of new homes in the U.S. rebounded from a record low level to which collapsed in May, which also supported the rise of quotations. Last week brought a volatile increases in the indexes, which found support in good quarterly results of several large American companies, despite concerns about the results of stress tests of European banks. They came on Friday and showed that seven of 91 tested banks do not have enough capital in case of a subsequent crisis. The index of 30 largest stock exchange and traded companies in the U.S. Dow Jones Industrial Average added 0.4 percent to 10 464.20 points and a half hours after the start of the session. Lead by the beginning of this year is 0.4 per cent. The broader S & P 500 added 0.5 percent to 1 108.63 points while the Nasdaq Exchange Nasdaq Composite index rose by 0.6% to 2 282.79 points. S & P 500 remains below the levels half a percentage point from the end of 2009 and the Nasdaq Composite was up 0.6 percent.
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The unexpected increase in new applications for unemployment benefits in the U.S. last week renewed fears about the state of the labor market and the recovery of U.S. economy. As a result, all three major indexes on Wall Street took down sharply in early session today. From the sale of shares suffered most manufacturers of durable goods, including Caterpillar, Boeing, Honeywell and Deere. Their share dropped by over 1% in morning trade. The index of 30 largest and often traded U.S. companies Dow Jones IA decreased by 0.7% to 10 338.19 points an hour after the start of the session. The broader S & P 500 lost 0.6 percent to 1 107.61 points and Nasdaq Exchange main index Nasdaq Composite fell by 0.7% to 2 291.05 points. All three stock closed yesterday Measure volatile session of the neutral zone after repeatedly changed its direction of movement. The series of U.S. economic data today showed that prices of consumer goods fell for the second consecutive month in May, and initial unemployment benefits rose unexpectedly last week. Meanwhile, it was clear that the growth of imports at the beginning of this year has increased and the negative balance on current account of the country to 109 billion dollars in the first quarter. Shortly thereafter came the data for the index of leading indicators, which predicts the development of the U.S. economy in the future. He rose for the 13th time in 14 months, adding 0.4 percent on a monthly basis in May after April remained unchanged.
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The Index Dow Jones Industrial Average experienced the worst May of 1940, and many hedge funds that have performed remarkable well in the months after the collapse of Lehman Brothers, suffered heavy losses. According to data from HFRX Global Hedge Fund Index, hedge funds in the U.S. lost an average of 2.7 percent in May, against the debt crisis in Europe, the subsequent decline in shares, the euro and commodity prices, and melt the difference between yields on short and long-term U.S. securities. This is the most significant decline in hedge funds in November 2008 when for months they lost an average of 3% resulting from the bankruptcy of Lehman Brothers in September. Almost every investment strategy has been losing in May, comment from Chicago-based Hedge Fund Research Inc. Dow Jones Industrial Average sank by 7.6 percent due to fears that problems with the Greek debt will be spread to Spain and Portugal. Profits of some of the most famous hedge funds this year were deleted. “Trying to manage risk in an environment where anything can go wrong, goes wrong, it is a lost cause,” said Brad Baltar, director of Boston-based Balter Capital Management LLC. “The only defense which seems to act like this in months, is to pay everything in cash.
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The latest this week in the U.S. trading session began with strong increases in three major indexes, after earlier today showed that initial unemployment in the country has fallen to its lowest level in 19 months, while factory activity in the sector reached its highest point for six years. The index of 30 largest and most traded companies in the Dow Jones IA U.S. rose by 0.7% to 10 396.82 points one hour after the start of the session. The broader S & P 500 advanced by 0.8% to 1 179.14 points and Nasdaq Exchange main index Nasdaq Composite, meanwhile, added 0.7 percent in value to 2 415.13 points. Stock optimism today was supported by data on the labor market, which showed that the planned redundancies reduced for the 13th consecutive month in March, and new applications for unemployment benefits fell to its lowest level since August 2009 here. The number of long-term unemployed Americans is also reduced. Finance Minister of the United States, however, warned in a television interview today that unemployment in the U.S. can remain “unacceptably high” for an extended period of time. He stated that at this stage, the country can not afford to reduce its budget deficit at the expense of supporting the economy forward CNBC. Even better were the data after the start of today’s trading session, which showed that U.S. factory sector recover more quickly from the crisis. The index, which monitors business activity in it, rose for the eighth consecutive month in March and reached 59.6 points to its highest level in six years.
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