Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Markets Lower On Poor Economics

Published 12/31/2000, 07:00 PM
Updated 08/05/2009, 05:27 PM

www.TheLFB-Forex.com The Forex Trader Portal

The U.S. market continued to decline on Wednesday, as ADP and the ISM reports failed to reach market expectations.

The major U.S. indexes continued to retrace the rally seen over the last two weeks of trading on Wednesday, as investors continued to cash out some portion of the their profits. In addition, the equity market sold off strongly after the ADP report, with the S&P futures falling as much as 1.5%. However, the futures market stabilized around the 990.00 area, and even retraced some parts of the decline seen just a few hours earlier.  

Only the financial and the basic materials sectors managed to trade in the green during the U.S. session, while the other sectors posted relatively strong declines. By a huge margin, the gains in the S&P 500 index were led by AIG, which surged 61% as traders are pricing in better than expected quarterly results after rival companies beat analysts’ projections. The financials also led the pack of gainers in the Dow Jones index, and were the most active stocks in both the NYSE and in NASDAQ.

Poor macroeconomic data hit the market’s valuation on Wednesday. The ADP report showed that the U.S. economy continued to lose ground at a strong pace, a pace stronger than seen over the last few recessions. In addition, the ISM report showed that the service side of the economy continued to contract in July, which points out the ongoing deterioration of the economy, even though most market participants think that the economy has already bottomed. 

Longer term Treasuries were sold, ahead of a massive auction of U.S. debt that culminates in September, at which time the U.S. Treasury will have offloaded the Stimulus package financing, to those that want U.S. debt, with the slack being back-stopped by the Federal Reserve. 
Yield on the 10-year note gained 0.73 basis points to 3.764%.

The Dow Jones Index fell 21.18 points (0.30%) to 9,292.01, while the S&P 500 index lost 1.98 points (0.20%) to 1,003.67

Crude oil for August delivery was recently trading at $71.80 per barrel, higher by $0.40. 

Gold for August delivery was recently trading lower by $1.90 to $967.80. 

TeamLFB provides forex related market analysis and trade signals

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.