Bears Still Dominate Proceedings

Lack of advance by super committee to reach an agreement on deficit cut intensified downhill hill slide of U.S. stocks on the first day of the week. The markets are behaving as if we are heading for an international recession. Not just are stocks sliding but real estate as well as commodities prices are following suit.

After losing 2.1% or 248.85 points, Dow Jones Industrial Average closed the day at 11,547.31. Bank of America Corp. was the leading loser, falling by 5%.S&P 500 Index declined on a 4th consecutive session. It closed at 1,192.98 after declining 1.9% or 22.67 points. In the 10 major industrial sectors, financial firms were the hardest hit.

The Nasdaq Composite Index followed suit as it slipped by 1.9% or 49.36 points to close at 2,523.14.
On the New York Stock Exchange, the ratio of advance to decline was 1 to 6 where more than 4 billion shares were exchanged.

U.S. stock prices are declining in spite of the fact that several better than expected data including LEI (leading economic indicators), industrial production as well as retail sales recently depicted a rosy scenario. This may be due to fears that U.S. economy is heading towards recession due to euro zone debt crisis.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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