In contrast to yesterday's close, US stocks ended with modest losses on Tuesday, 13 October, 2009 despite the weak dollar and better than expected earning report. Higher crude prices tried giving the energy sector a good boost. Nevertheless, tech heavy Nasdaq was the only sector to finish in the green. Dow and S&P 500 ended with minor losses.
The Dow Jones Industrial Average ended lower by 14.74 points at 9,871.06. The Nasdaq Composite Index, ended higher by 0.75 points at 2,139.85. S&P 500 ended lower by 3 points at 1073.19.
Seven of the ten economic sectors ended in the red led by healthcare, financial and utilities sectors. Telecom, consumer discretionary and material sectors were the main winners.
Dow component Johnson & Johnson reported its third quarter earnings release this morning. The company unveiled better-than-expected earnings and an increased earnings outlook for fiscal 2009. A softer top line has caused some disappointment, though.
In the currency market on Tuesday, the dollar fell against most of its rivals. The euro climbed up substantially today. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell to fourteen month low figure.
The Financial sector felt the brunt of the selling effort today. Even though it was off of its lows, the sector was the worst performing sector today. Its weakness came amid a downgrade of Goldman Sachs by Meredith Whitney Advisors.
Crude prices ended higher at Nymex on Tuesday, 13 October, 2009. Though prices pared initial gains, still they managed to end higher at the end. Prices rose today as oil cartel OPEC increased its forecast for global oil demand.
On Tuesday, crude-oil futures for light sweet crude for November delivery closed at $74.15/barrel (higher by $0.88 or 1.2%). During intra day trading, it rose to a high of $74.85. Last week, crude ended higher by 2.8%.
In the latest monthly report, the Organization of the Petroleum Exporting Countries on Tuesday raised its forecast for world oil demand by 200,000 barrels a day for both this year and 2010. After the revision, world oil demand in 2009 is expected to average 84.2 million barrels a day, which represents a decline of 1.4 million barrels from 2008 levels. In 2010, global oil demand is expected to average 84.9 million barrels a day, marking a growth of 700,000 barrels a day from 2009 levels.
Yellow metal marked another new record today. Prices rose on Tuesday following rising crude price and depressed dollar which increased the appeal of precious metals as a hedge against inflation. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for December delivery ended at $1,065, higher by $7.5 (0.7%) an ounce on the New York Mercantile Exchange. During intra day trading, gold price rose to a high of $1,068.4. For the week, gold ended higher by 4.3% last week. Year to date, gold prices are higher by 19.8%.
For tomorrow, the day is heavy in terms of earnings and economic reports. Johnson & Johnson is one of the main earning reports awaited. In terms of economic data, Export prices, import prices, retail sales data will garner attention.
Powered by Capital Market - Live News