Caution on a Busy Week For Reporting

Investors have been taking profits after gains last Friday, caution is dominant before a busy week and at the failure of several Italian banks succumbing to stress tests. After two and a half hours of trading, the Dow had gained 0.2% to 16,777 points and the S&P500 0.4% to 1,957 points.

Stress tests of the EU banking sector showed they are generally well capitalized, but 25 banks have failed, including nine Italian banks as Monte dei Pasci di Siena plunged nearly 20% in Milan.

Stocks catch their breath after the rally last week and before a busy schedule, 150 companies in the S&P500 are to publish results during the next five days. Attention will also focus on the two-day meeting of the Fed.

Meanwhile, statistics show some gloom: PMI Markit services sector declined by 1.6 and 57.3 point this month, and is thus reduced to its lowest level in six months.

Potential home sales in the US rose 0.3% between August and September, following a contraction of 1% between July and August, but economists hoped the average would bounce three times stronger.

In stocks, Merck was down 2% at $56.4, despite a less-than-expected profits for the third quarter 2014, due to sales growth in certain activities down and tightening its annual target range of BPA.

Micron Technology gained 3.3% to US $32.1 after the approval of a share buyback program to the value of one billion dollars that may be floated on the market or OTC at its discretion.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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