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The financial sector lead the bears on Wall Street |
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Thursday, 10 July 2008 |
In mid-week trade in the U.S. again started without clear direction, but optimism from the previous session quickly disappeared and ultimately Dow remained a step in a new two-year bottom. The lack of data about the economy and reports of big companies leave a market under the control of negative moods, which once again came mainly from not stable financial sector.
After day from earlier stock appreciated by the financial sector thanks to support from the Fed, yesterday they were subjected to auctions and had the burden of the entire market. Fannie Mae and Freddie Mac once again become among the biggest losers, as shares of both companies for mortgage loans fell by 12.8% and 23% to 15.36 and 10.40 dollars.
Negative trend for the market as a whole during the session yesterday and was reinforced by the technological sector. Among the blue chips of Intel Corp papers were at the head of the bears, once by Merrill Lynch forecast that the company will be able to meet its forecasts for the second quarter. Shares of the biggest maker of computer chips have become cheaper in with 5.1% and closed at a level of 19.85 dollars. Shares of Cisco Systems Inc. became as cheap after by UBS announced that the company is facing a decline in sales in the U.S. and Europe. Securities company lost 5.5 percent and ended the day at a level of 21.65 dollars, which is the lowest of September 2006 here.
Shares of Alcoa gave initial support to the market after the end of the session yesterday announced the company reports its second quarter. The manufacturer of aluminium reported decline in profits within expected, but ultimately its shares ended the day with a decrease of 5.8% to a level of 39.90 dollars.
The main index ended the session with big losses, as have removed completely won positions on Tuesday. Dow Jones Industrial Average lost 2.2% and closed at a level of 11 145 points. The broad Standard & Poor's 500 decreased by around 2.5% to a level of 1 245 points. Nasdaq Composite suffered the biggest decline, losing 2.7% to 2 235 points.
NYSE traded volumes were about 1.5 billion shares in the ratio of losers / 2 to 1 profitable, and the NASDAQ - around 2.3 billion shares in the ratio of losers / winning 5 to 2.
Technical analysis
Dow Jones
Dow Jones recorded its biggest decline for the past two weeks, having remained a step of reaching a new two-year bottom. In extending the negative mood more serious support is expected in 11 020 and 10 680. In the opposite direction, short-term resistance can be expected in 11 450, followed by 11 730 and 11 920.
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Finances and Markets 
