Financial Communique » Dow Jones

US indexes started the session with decreases

Viliyana Filipova — Mon, 23 May 2011 15:55:46 +0000

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.

Some affraids for US stocks

Viliyana Filipova — Wed, 16 Mar 2011 09:16:36 +0000

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.
The collapse came in decreasing crude oil prices trend
For weeks the market feared that high oil prices will push the economy into a new recession. But on Thursday lightest oil fell U.S. $ 2 a barrel to 102, after the Japanese earthquake on Friday – and up to 101.30 dollars. He is still above the limit of 100 dollars, which could mean problems for the economy, but the decrease should be good news. If at the same time, the market decline, it might indicate that investors re-foundation of recovery.
The decline was across the board
He was not limited to a few exchanges in the U.S., Europe or the Middle East. Wall Street fell 1.9 percent, Shanghai and Tokyo – with about 1.5%, Brazil – with 1.8 percent, London – also 1.5 percent. Even the gold prices fell. U.S. Index S & P 500 is 4% below its peak of last month, three times in failed attempts to regain lost positions. Not very encouraging.
Financial fears returned
The European debt crisis, the continuing problem of employment in the U.S. but do not forget the swollen U.S. debt to finance the entire uptrend in the stock market. In recent months, watching with amazement how many investors on Wall Street are trying to ignore these fears, but they can not remain hidden for long. On Thursday, investors are scared when Moody’s lowered the Spanish rating. But why should there be surprised? If investors have noticed the price of the instruments for the protection of bankruptcy of the Spanish and Portuguese bonds, not to mention the Greek, would see the warning signs.
Some of the most inventive “bulls” suddenly became very nervous.
A European hedge fund manager who was “bullish” set from January 2009 onwards, and this was just a few weeks, partly changed its attitude. One of his greatest concerns is related to the record trade deficit to China in February. He continues to seek attractive opportunities for shopping, but buy aggressively during the current market correction.
“Bullish” market just picked up too much too fast indexes.
The compared bottom two years ago S & P 500 almost doubled, Russell 2000 (index of smaller companies) jumped by 130%. Record value reported and the index of companies with average market capitalization S & P Mid Cap 400. But the foundation suggests that economic growth in this period was weak. U.S. economy in real terms has not increased to three years ago. True picture of the labor market remains catastrophic – much worse than official figures. The salaries do not move.

Dow Jones on positive result for the year

Viliyana Filipova — Sat, 24 Jul 2010 08:42:44 +0000

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.
Shares of BP rose 4.3 percent to 38.46 dollars per share, after speculation that CEO Tony Howard company may be removed from his post. The U.S. dollar becomes cheaper against the euro, yen and British pound. Oil is traded with a fall of 0.1 percent to 78.90 dollars a barrel and gold with delivery in August with a cheaper 0.5% to 1 182.2 dollars an ounce. The yield on ten-year U.S. government bonds remained unchanged at a level of 2.99 percent. In this week’s financial statements go further 157 companies by S & P 500 for the previous quarter, according to CNN. Most important among them are the names of Boeing, DuPont, Exxon Mobil, Chevron and Merck.

Indexes of Wall Street decreased after the news for unemployment

Viliyana Filipova — Thu, 17 Jun 2010 12:54:33 +0000

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.
The index is calculated by the business organization profit Conference Board. Its economists state that as of May its value is well above its last peak in December 2006, which implies a permanent recovery of the U.S. economy from the crisis. British oil company BP will again be at the center of attention today because its CEO Tony Howard will testify before the U.S. Congress in conjunction with its platform caused by oil spills Deepwater Horizon in the Gulf of Mexico. On Wednesday, BP said it would earmark $ 20 billion to repay the damage caused by ecological disaster and that will not pay a dividend to its shareholders this year. Shares of oil company rose 0.2 percent to U.S. $ 31.92 on the New York Petroleum Exchange in morning trading.

Hedge Funds in USA with large monthly decrease

Viliyana Filipova — Tue, 01 Jun 2010 16:38:16 +0000

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.
Advantage, hedge fund of John Paulson, who in 2008 finished the year with a profit of 25% when at the same time S & P 500 slid 37 percent in the first three weeks of May, lost 6.9 percent, which accumulated a loss of 3 3% this year, says Bloomberg, citing investors aware of anonymity. Viking Global Andres of Halvorsen and Moore Global Louis Bacon – hedge funds, which also successfully defended clients in 2008, now lost respectively 3.4% and 7.7% in May, by which their losses in 2010 reached 2.9% for the Viking Global, and 4.8 percent for Moore Global.
Hedge fund Paulson, Halvorsen and Bacon have one of the best long-term profitability in the industry, the average return of each of the years of its foundation more than 20%. “Many of protection against the use of hedge funds losing markets, working” said Baltar.
“The stakes on losing their shares is not brought in enough revenue to offset losses from investments in shares expected to rise. Raw materials lost 8.2 percent in May. Traders who took positions in anticipation of the yield curve of U.S. securities become steeper – a sign of the growth outlook, suffered losses when it became a slope, since the difference between yields on ten-year government bonds biennial and fell, “he said.

Hard increase of US indexes

Viliyana Filipova — Wed, 31 Mar 2010 12:52:08 +0000

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.
Earlier today it became clear that activity in the manufacturing sector in Australia, China, Britain, Japan, Switzerland and the euro area is also growing in March and it faster than expected. The news supported the hopes that the gradual recovery of world economy will continue this year. Yesterday’s session brought three index decreases after it became clear that cuts in the U.S. private sector grew unexpectedly in March. However, the quarter brought a 4.1% rise in Dow Jones IA, while the S & P rose 4.9% and Nasdaq Composite rose the most, after record quarterly growth of 5.7 per cent.