 |
© Bulbrokers SC |
The record high producer’s inflation deepened the negative trend on Wall Street
Stocks continued their decline on Tuesday after a much higher-than-expected jump in producers inflation disturbed the market which was already hurt by worries about the financial sector.
Dow Jones Industrial Average lost about 1% for a second straight session.
The Labor Department announced the Producer Price index has risen to 1.2% in July, doubling the expectations, and lifting the current annual rate to 27 years high. Even after stripping out food and energy, core prices rose by a higher-than-expected 0.7%, the biggest increase since November 2006. The renewing of inflation’s uptrend rose concerns about the housing market and the banking sector. The Commerce Department said July housing starts fell to an annual rate of 965 thousand units, the lowest level in more than 17 years.
Meanwhile, Lehman Brothers Holdings Inc., came under pressure after a JPMorgan Chase & Co. analyst estimated the investment bank will have to write down its investments during the third quarter by 4 billion dollars. Lehman fell 10.3% to 13.48 dollars per share.
Retail stocks also fell amid a weak outlook for consumer spending. Retailers reported mixed quarterly results, adding to investors' uncertainty about the economy. Home Depot Inc. reported a 24% decline in its secondquarter earnings but topped Wall Street's expectations. Shares dipped 2.1% to 26.39 dollars per share. Target Corp. said its secondquarter earnings fell 7.5%, but it beat forecasts despite anemic sales.
TECHNICAL OVERVIEW
The short term picture remains unchanged as Dow continued its consolidation movement breaking below 11440 levels. On the downside, supports are seen at 11220, followed by 11080 and 10 970. So far, the resistance at 11470 will limit the rise. If broken successfully, next targets will be 11680 and 11870.
DOW JONES (chart, table)
*****
To view the original document, please click on the link below:
http://reports.aiidatapro.com/BBB/Bulbrokers/20.08.2008_Dow_daily_report.pdf
*****
Copyright: 2007 STS Finance AD. All rights reserved.
For further Information please contact STS Finance, 1 Chervena Stena Str., 1421 Sofia
Phone: + 359 2 963 11 38, fax: +359 2 963 09 36, e-mail: research@finance.sts.bg, web site: http://www.finance.sts.bg
*****
AII Data Processing does not endorse in any way, the views, opinions or recommendations expressed above. The use of the Information is subject to the terms and conditions as published by the original source, which you have to read and accept in full prior to the execution of any actions taken in reliance on Information contained herein.
 | SeeNews SeeNews is a business and financial news and information provider which brings its visitors and customers access to detailed coverage on the fast-growing companies, economies and markets of ten Southeast European nations. |
Search for: investments |
Search for: market |
Search for: share |
Search for: index |
Search for: chart |
Search for: sales |
20.08.2008 Dow daily report.pdf, 119 Kb
