|
Dow loses 350 points aims for a day |
|
Saturday, 28 June 2008 |
 The session on Wall Street on Thursday began a serious decline in the main U.S. indices, which returned to its level prior two years. The crash was caused mainly by a new series of negative news and forecasts of some economic sectors and record slumping oil, which topped the level of 140 dollars for a barrel. President of OPEK - Shakib Helil, said in an interview that the price of raw materials can even reach 170 dollars for a barrel in the summer.
Goldman Sachs during the day lower ratings of U.S. brokers and recommended its clients to sell papers of General Motors. The Bank said it expects new quits of assets and possibly raise additional capital of Citigroup Inc and Merrill Lynch. Further tension provoked and Research In Motion Ltd, Nike Inc and Oracle Corp, which made cautious outlook for coming quarters.
Economic data, which argued in the day, as a whole offered no major surprises. The revised gross domestic product account for the first quarter growth of 1.0% according to the consensus, while the index of consumer spending has increased by 1.1% against forecasts of 1.0%. Requests for aid to unemployed are detained almost unchanged from the previous week at 384 000, and sales of existing homes for May rose more than expected by 2% to 4.99 million.
In the session with high volumes of trade index closed of three red, reaching levels by 2006. Dow Jones Industrial Average decreased by 3.0% to a level 11453.42, S & P500 step with the 2.9% level at 1283.15, and NASDAQ Composite fell by 3.3% to 2321.37 level.
General Motors (-10,8%) lead the fall in blue chips after Goldman Sachs advised its clients to open their shares because of the bad situation of the automotive market. Citigroup Inc also appeared on the list for sale, which led to the depreciation of securities the bank with 6.3%.
Shares of Research In Motion are down to 13.3% after the company announced lower than expected revenue forecasts for the next quarter. Sales of BlackBerry manufacturer will be under pressure because of competing products as new and cheaper iPhone of Apple. Proved conservative and the prospect of Oracle, which led to a drop in securities of the company by 5.0%.
NYSE traded volumes were about 1.6 billion shares in the ratio of losers / winning 13 to 2, and the NASDAQ - around 2.3 billion shares in the ratio of losers / winning 4 to 1.
Technical analysis
Dow Jones
Dow was subjected to serious pressure attacking key levels of support at 11725 and 11630, and literally sinking. In downwards following more serious support meet only at levels 11020 and 10680, which opens the potential for solid long decline in the index. Any intermediate support may be sought about the level 11260. Upon resumption of ascending movement, the first opposition will have a level 11920, followed by 12165 and 12340. |
Finances and Markets 
