Stocks at Wall Street ended in a mixed mode on Tuesday, 03 November, 2009. Strong economic data coupled with in line earning report from a major Dow components helped stocks recover from a slow and negative start earlier during the day. The strong dollar had forced stocks for a slow start. The Federal Reserve also started its two day policy meet today.
The Dow Jones Industrial Average ended lower by 17.53 points at 9,771.91. The Nasdaq Composite Index, ended higher by 8.12 points at 2,057.8. S&P 500 ended higher by 2.5 points at 1045.67. Dow was down by 50 points earlier during the day.
Five of ten sectors ended in the green led by industrial and materials sectors. Telecom and consumer staple sectors were the main losers.
The Commerce Department in US reported on Tuesday, that factory orders rose 0.9% in September, the fifth monthly increase in six months and more than market expectations.
In the currency market on Tuesday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies reversed its course after dropping earlier during the day. Finally, it rose by 0.1%.
In the earning area, Dow component Johnson & Johnson reaffirmed an in-line earnings outlook for fiscal 2009, but also said it will eliminate 6% to 7% of its global workforce as it works to strengthen its position.
Precious metal prices ended substantially higher on Tuesday, 03 November, 2009. Prices shot up as Indian Central Bank disclosed its ides to purchase 200 metric tons of bullion.
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 $1,084.3, higher by $30.9 (2.9%) an ounce on the New York Mercantile Exchange. Earlier, it rose to a high of $1085.2. This was an all time high for the yellow metal. Previous to this, in October, gold had registered record highs quite a few times reaching an all time high of $1071. Year to date, gold prices are higher by 23%.
For tomorrow, the day will have couple of key economic reports. The ADP Employment Report for October is due, along with the ISM Services Index for October. The FOMC will also issue its latest policy statement.
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