Fundamentals
Global Equities End Longest Rally in Eleven Months
June 22, 2010 at 6:54 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Asian, European, and U.S. Stocks Close Lower On the Day
• U.S. Existing Home Sales Unexpectedly Decline in May
• Dollar Rallies Against Euro and Commodity Currencies
Stocks sank across the board today, sending the MSCI World Index lower by 1.4 percent to end its longest winning streak in eleven months. The world index, which had closed higher in each of the prior ten sessions, declined as U.S. existing home sales disappointed and new concerns arose regarding the BP oil spill. Initially, U.S. stocks actually traded higher to begin their session, but investor optimism was blunted by news that existing home sales unexpectedly fell 2.2 percent to a 5.66 million annual rate in May, following an 8 percent rise in the month prior. The weak data spurred investor concerns over the strength of the economic recovery and evidenced that further weakness in housing remains possible. Furthering investor uncertainty was a report from the Obama administration that said it will appeal a federal judge’s ruling to lift a six-month moratorium on deepwater drilling. The news pushed shares of BP, Transocean, and Halliburton lower by at least 2 percent each. As for commodity prices, crude oil closed the day down 0.4 percent to $77.53 a barrel, while gold rallied slightly to close above the $1240 level. Concerned investors continued to seek out the yellow metal for its “safety” qualities and also purchased U.S. dollars in favor of the euro and commodity currencies. The U.S. Dollar Index rallied for a fourth time in five days, closing at 86.106, its highest level since June 14.
DJIA 30 10,293.52 -148.89 -1.43%
The broad-based Dow Industrial Average dropped over 1 percent on the day as twenty-seven of the thirty index stocks closed in the red. Aluminum giant Alcoa was the worst performer on the index, dropping over 3.6 percent, while Boeing, Home Depot, and Caterpillar fell over 2.4 percent.
S&P 500 1,095.31 -17.89 -1.61%
The S&P 500 posted the largest decline among major U.S. indices as industrials, utilities, and commodity-related shares fell over 2 percent each. Prospects of the Obama administration appealing a court decision to lift the moratorium on deepwater drilling drove shares of Chevron, ConocoPhillips, and STO down at least 2 percent each.
NASDAQ 2,261.80 -27.29 -1.19%
Shares on the tech-heavy Nasdaq showed weakness today as all ten of its sectors closed in the red, including technology shares which fell over 0.7 percent. Cisco and Applied Materials fell over 1.5 percent on the session, while Apple shares managed to gain 1.1 percent.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
Rallying Equities Send Dow to Biggest Gain in Two Weeks
June 10, 2010 at 6:01 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Economic Reports From China, Japan, and Australia Show Accelerating Growth
• Jobless Claims Report Mixed, Monthly Budget Deficit Less Than Anticipated
• Euro Rallies For Third Day Against Greenback
Risk appetite had a strong revival in trading today, as encouraging economic reports from abroad boosted equities and pushed the Dow Jones Industrial Average to its largest gain in two weeks. The Dow added 273 points to 10172 on the day, while the S&P 500 rallied 31 points to 1086. The encouraging economic reports came from officials in China, Japan, and Australia, with each showing accelerated growth for the respective countries. Chinese exports rose by the most in six years, helping to fuel confidence that the world’s fastest-growing economy may continue on its torrid pace and lead the global recovery. Japan, on the other hand, announced that its annualized GDP rose 5.0 percent in the year ended Q1, beating expectations for a 4.2 percent gain. News from Australia was also bullish for investors, as the country’s unemployment rate fell from 5.4 percent to 5.2 percent in May. As for the U.S., jobless claims were generally positive as well as initial jobless claims fell from 459K to 456K in the week ended June 5 and continuing claims dropped from 4717K to 4462K in the week ended May 29. The plethora of economic data helped renew positive investor sentiment for at least one day, bolstering global equities and commodities alike. Crude oil rallied over 1.4 percent to close above $75 a barrel for the first time since May 12. Gold, on the other hand, continued yesterday’s slide, falling to $1217 an ounce. The yellow metal was trading above $1250 earlier this week, but strong economic data seemed to quell investor fears today and reduce the need for gold’s “safe haven” appeal. As for currencies, the euro rallied against the greenback for a third consecutive session, contributing to a near 1 percent decline in the U.S. Dollar Index to 87.09.
DJIA 30 10,172.53 +273.28 +2.76%
The broad-based Dow Industrial Average posted its largest one-day gain in two weeks today on rallying energy shares and industrials. Caterpillar led the 30-stock index, posting a 5.5 percent gain, followed closely by energy firm Chevron and aluminum giant Alcoa, whose shares gained over 4 percent each. The stocks were boosted by a strengthening outlook for global growth, including strong export data from China.
S&P 500 1,086.84 +31.15 +2.95%
The S&P 500 posted the largest gain among major U.S. indices as industrials, financials, and commodity-related shares gained over 3 percent each. Financial shares were led by 5 percent gains for American Express, Prudential, and Capital One. Also rallying on the day were shares of Wells Fargo, Metlife, and Mastercard, which gained over 4 percent each. Goldman Sachs, on the other hand, fell over 2 percent after receiving a subpoena from the FCIC yesterday.
NASDAQ 2,218.71 +59.86 +2.77%
Shares on the tech-heavy Nasdaq reversed their weekly decline as technology shares rallied 2.3 percent on the session. Chinese search engine Baidu was the biggest winner of the sector, ralling nearly 8 percent, while tech giants Apple and Intel gained just over 3 percent each.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Equities Reverse Early Gains Following Beige Book Release
June 9, 2010 at 6:37 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Federal Reserve Calls Growth in Many Regions “Modest” in Beige Book Release
• Crude Oil Closes Above $73 a Barrel, Gold Falls Below $1240 Level
• Euro Gains Against Greenback For a Second Day
Going into the afternoon’s trading, it appeared that U.S. equities were set to follow the global return of risk appetite that sent foreign stocks and commodities higher on the day. The release of the Federal Reserve’s Beige Book, however, weakened investor confidence and sent stocks back into the red. In the release, the Fed stated that the U.S. economy strengthened in all twelve regions, although at a “modest” pace. The growth, driven partly by consumer and business spending, was dampened by continued high levels of unemployment throughout the nation and concerns over deteriorating conditions in Europe. Fed Chairman Ben Bernanke says the central bank remains “highly attentive” to risks from Europe and Atlanta Fed President Dennis Lockhart said the FOMC may need to slow any move to raise interest rates because of the European crisis. Overall, the rhetoric failed to boost investor sentiment, sending the Dow Jones Industrial Average below 9900 for the second time in three days. Economic data released today also disappointed, as mortgage applications last week fell over 12 percent and April wholesale inventories fell short of expectations.
DJIA 30 9,899.25 -40.73 -0.41%
After rallying over 100 points intraday, the Dow Jones Industrial Average closed in the red as 22 of the 30 index stocks closed lower on the day. Exxon Mobil fell over 2 percent as oil & gas shares continued to take a hit following the BP oil rig explosion weeks ago in the Gulf of Mexico. Chevron Corp. declined 0.3 percent on the day.
S&P 500 1,055.69 -6.31 -0.59%
The S&P 500 posted the largest decline among major U.S. indices as energy firms and financials fell over 0.9 percent on the day. Bank of America and Wells Fargo closed over 2 percent lower on the day, while Goldman Sachs and Morgan Stanley also closed in the red. Shares of Citigroup actually traded to the upside, gaining over 4 percent.
NASDAQ 2,158.85 -11.72 -0.54%
Shares on the tech-heavy Nasdaq extended their weekly decline as technology shares fell over 1 percent. Chinese search engine Baidu helped lead the decline, falling over 4 percent, while shares of tech giants Apple and Google fell over 2 percent each.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Equities, Commodities Rally Despite Weakness in Europe
June 8, 2010 at 4:59 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• NFIB Optimism Beats Expectations, IBD/TIPP Reading Disappoints
• Crude Oil Rallies Above $72, Gold Reaches Record $1250 Intraday
• Euro Rallies Against Greenback Following Three-Day Decline
On a day in which stocks swung between gains and losses like a pendulum, the Dow Jones managed to close 123 points higher despite continued weakness in Europe. U.S. investors managed to shake off a third consecutive down day for European stocks, including a 125 point plunge for Spain’s IBEX 35 Index, which closed at its lowest level in fourteen months. U.S. stocks received an initial boost following comments from Ben Bernanke, as the Fed Chairman said the economic recovery remains intact and a double-dip recession is highly unlikely. Furthering bullish sentiment was a report from the National Federation of Independent Business that said confidence among U.S. small businesses beat expectations for May and rose to the highest level since September 2008. Not all news was positive, however, as the U.S. IBD/TIPP economic optimism reading unexpectedly declined in June and technology stocks greatly underperformed the broader market.
On the commodities front, crude oil rose above $72 a barrel and gold surged above the $1250 level before settling at $1235 an ounce. The gain in crude oil was the first since Thursday and was aided by a falling greenback as well as rejuvenated risk appetite. The U.S. Dollar Index declined for the first time since May 27, closing the day at 88.111.
DJIA 30 9,939.98 +123.49 +1.26%
The bluechip index rallied over 100 points today as 25 of the 30 Dow stocks closed higher on the day. Science and technology firm DuPont led all shares on the index, gaining over 4 percent after the company reiterated its earnings per share outlook for the fiscal year 2010. Energy firm Exxon Mobil gained over 3 percent on rising oil prices, while financial shares Bank of America and JPMorgan Chase rose at least 2 percent each.
S&P 500 1,062.04 +11.57 +1.10%
One day after falling to a seven-month low, the broad-based S&P 500 rallied over 1 percent on strength in basic materials and telecommunications, which gained 2 percent each. Leading the way for basic materials was Consol Energy, which gained over 5 percent, followed by Freeport McMoRan and Cliffs Resources which added over 4 percent each. Telecom shares were led by AT&T and Verizon, which each gained over 2 percent on the day.
NASDAQ 2,170.57 -3.33 -0.15%
Shares on the tech-heavy Nasdaq posted the only decline among major U.S. indices as technology shares declined 0.7 percent. Marvell Technology fell over 5 percent as the chipmaker’s stock price declined below its 200-day moving average. Dell, Broadcom, and Yahoo! were also weak, dropping over 1 percent each.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Equities Sink Lower, S&P Hits Seven-Month Low
June 7, 2010 at 7:34 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Goldman Sachs, Moody’s, and Warren Buffet Receive Subpoenas From Commission
• Consumer Credit Unexpectedly Increases $1.0 Billion in April
• Euro Drops Below $1.19 Intraday
U.S. stocks followed their Asian and European counterparts into the red, as investors remained bearish amid threatening fiscal deficits and high unemployment. The S&P 500 fell to the 1050 level, the lowest close for the index in seven months. Although there was some positive news out of Europe, including a better-than-expected German factory orders release, overall sentiment remained negative as macro trends out of the euro zone pointed to more downside risk. Furthering weakness in equities was news of a subpoena issued to Goldman Sachs by the U.S. panel investigating the financial crisis. According to reports, the investment bank failed to hand over documents in a “timely manner.” Also receiving subpoenas from the commission were ratings agency Moody’s Corp. and legendary investor Warren Buffet.
DJIA 30 9,816.49 -115.48 -1.16%
The bearish sentiment following Friday’s NFP report continued into today, pushing the broad-based Dow Jones Industrial Average down by over 100 points. Caterpillar and Alcoa dropped over 3 pecent each, while Disney and Microsoft fell nearly 2 percent on the session. Only five of the Dow’s 30 stocks closed higher on the day, led by a 0.6 percent gain in Walmart shares.
S&P 500 1,050.47 -14.41 -1.35%
The broad-based S&P 500 slumped to a seven-month low, led by large declines in financial shares and industrials. Among bank stocks, Citigroup and Bank of America fell over 3 percent each, while Goldman Sachs, JPMorgan Chase, and Morgan Stanley shed over 2 percent on the day. The decline in industrial shares was precipitated by a near 5 percent decline for General Dynamics.
NASDAQ 2,173.90 -45.27 -2.04%
Shares on the tech-heavy Nasdaq posted the largest decline among major U.S. indices as technology shares plunged over 2.3 percent. BlackBerry maker Research in Motion dropped over 5 percent, followed closely by Chinese search engine Baidu and Seagate Technologies, which fell over 4 percent each. The most heavily weighted tech companies on the index, Apple and Microsoft, each declined approximately 2 percent on the day.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Equities Reverse Sharply in Last Hour of Trading
May 26, 2010 at 5:14 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Reports Surface that Chinese Officials are Reviewing Euro-Zone Debt Holdings
• Durable Goods Orders and New Home Sales Beat April Expectations
• Euro Approaches Four-Year Low Versus Greenback
Entering the final hour of trading, U.S. stocks appeared set to advance following a strong durable goods report and better-than-expected home sales in April. A concerning report out of China, however, quickly reversed investor sentiment, causing the Dow Jones Industrial Average to plunge 100 points in the final forty-five minutes of trading. It was the third consecutive decline for the index which fell to 9974, its lowest close since a 100-point dip on February 8 sent the index to 9908. Initially, equities showed strength as strong economic data in April gave investors hope that the U.S. economy may avoid the difficulties that currently plague Europe. Purchases of new homes beat expectations and rose to a two-year high in April, while durable goods rose 2.9 percent in the month, the best reading since January. The economic readings, coupled with equities strength in Europe and Asia, helped boost U.S. stocks for much of the day and sent commodity prices higher across the board. Crude oil futures rose nearly 3 percent to close above the $70 level and gold futures jumped over 1 percent to $1212. Around 3:15 PM in New York, however, U.S. equities took a turn for the worst following a Financial Times report on China’s holdings of European debt. The report stated that Chinese officials have been meeting with foreign bankers in recent days to review the country’s holdings of European sovereign debt in light of the region’s fiscal difficulties. The report derailed investor confidence in the Euro-zone economy, causing a sharp reversal in U.S. equities and pushing the euro near a four-year low against the U.S. dollar. The Dollar Index closed higher as a result, settling at a 14-month high of 87.30.
DJIA 30 9,974.45 -69.30 -0.69%
The Dow Jones Industrial Average posted the largest decline among major U.S. indices as 22 of the 30 bluechip stocks closed in the red. Leading the decline were McDonald’s and American Express which dropped 2 percent each, followed by Verizon and Chevron stock which fell at least 1.4 percent on the day. On the upside, Disney rallied 2.3 percent and Merck gained 1.1 percent.
S&P 500 1,067.95 -6.08 -0.57%
The broad-based S&P 500 slumped for a second time this week, led by declines in telecommunications shares and consumer goods. Sprint Nextel led the decline in telecom stocks, dropping over 7 percent, while Verizon and Leucadia shares fell over 1 percent. Weakness in consumer goods was heavily influenced by a 2.6 percent drop in PepsiCo shares, as well as a 1 percent decline for Coca-Cola and Procter & Gamble.
NASDAQ 2,195.88 -15.07 -0.68%
Shares on the tech-heavy Nasdaq fell for the third consecutive day as technology shares dropped over 1 percent. Microsoft, the most heavily-weighted company in the tech sector, fell over 4 percent and was replaced by Apple as the world’s most valuable technology company by total market cap. Microsoft closed the day with a market cap of $219.2 billion, trailing Apple’s $222.1 billion.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
Global Equities Plunge Lower, Furthering Weekly Losses
May 20, 2010 at 6:10 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Risk Sell-off Continues on Europe Concerns
• VIX Volatility Index Rises to Highest Level Since March 2009
• 10-Year U.S. Treasury Yield Falls to Lowest of Year
Stocks around the globe extended their weekly decline as skittish investors continued to sell risky assets in favor of U.S. dollars and government bonds. The Stoxx Europe 600 Index dropped 2.2 percent during European trading hours, while the S&P 500 index fell nearly 4 percent during U.S. trading. Investors also sold off commodities across the board, driving oil prices below $66 a barrel intraday and gold below $1200 an ounce at day’s end. The risk sell-off led to major inflows for “safer” government debt, driving down the yields of U.S., German, French, and U.K. bonds. Ten-year U.S. Treasury yields fell 16 basis points to 3.213 percent, the lowest of the year. As for currencies, the sell-off of “commodity currencies” continued as the Australian Dollar and New Zealand Dollar each fell over 2 percent against the greenback. The aussie has been especially weak in recent trading, tumbling nearly 7 percent against the U.S. dollar since Monday. Overall, market participants remained fearful and uncertain, concerned that Greece’s economic woes may spread to other European nations, ravaging the region’s economy in the process. The VIX volatility index was a clear indicator of market uncertainty, rising over 10 percent today to its highest level since March 2009.
DJIA 30 10,068.01 -376.36 -3.60%
The Dow Jones Industrial Average fell over 3 percent as all thirty index stocks closed in the red. Bank of America and Alcoa were the biggest laggards, plummeting over 6 percent each, while shares of General Electric fell over 5.7 percent. Overall, the index has shed 3.45 percent for the year.
S&P 500 1,071.59 -43.46 -3.90%
The broad-based S&P 500 slumped for a fourth time in five sessions as financials and basic materials shares fell over 4.5 percent each. The major U.S. investment banks all fell in value, as shares of Morgan Stanley, Wells Fargo, and Citigroup dropped at least 4 percent each. As for basic materials, Freeport-McMoRan and Peabody Energy each fell 6 percent.
NASDAQ 2,204.01 -94.36 -4.11%
Shares on the tech-heavy Nasdaq posted the biggest loss among major U.S. indices as tech stocks declined nearly 4 percent on the day. Research in Motion was the biggest loser of the ten most heavily-weighted tech stocks on the index, dropping over 5 percent, while shares of Apple, Dell, and Yahoo! declined over 4 percent each.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Equities Fall After German Ban on Short Selling
May 18, 2010 at 6:19 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Germany’s BaFin Regulator Announces Temporary Ban on Naked Short Sales
• Crude Oil Tumbles Beneath $70 a Barrel, Gold Declines Over 1 Percent
• Euro Falls Below $1.22 For First Time Since April 2006
U.S. stocks tumbled lower following an announcement from Germany’s BaFin financial-services regulator that said it will place a temporary ban on naked shortselling and naked credit-default swaps of euro-area government bonds. The ban, which began at midnight in Germany, will also prevent short sales of ten banks and insurance companies. The announcement had a dire effect on risk appetite, as U.S. stocks reversed their initial gains and commodities closed lower across the board. Both the Dow Jones Industrial Average and S&P 500 fell over 1 percent on the day, while crude oil fell nearly 1 percent to close under $70 a barrel and Comex gold futures shed over 1 percent to $1214 an ounce. Already skittish investors feared that the BaFin announcement to ban short selling could indicate further bearish news awaits in the euro zone. The BaFin announcement also triggered further euro weakness, driving the sixteen-nation currency below $1.22 for the first time since April 2006. Speculation swirled that the German short sales ban could be an indication of further euro deterioration behind the scenes that market participants may not be aware of. Overall, market action remains choppy and unpredictable, as investors attempt to weigh the impacts of euro zone fiscal instability on the broader markets. The VIX volatility index was a clear indicator of market uncertainty, rising 8 percent today to its highest level since May 7.
DJIA 30 10,510.95 -114.88 -1.08%
The Dow Jones Industrial Average dropped over 1 percent as twenty-nine of the thirty index stocks closed lower on the day. American Express was the biggest index laggard, falling 3.3 percent, while Boeing and Intel shed over 2 percent each. Wal-Mart Stores was the only Dow stock to close in the black, as shares rallied 1.8 percent after the retailer announced a 10 percent jump in quarterly profit for Q1.
S&P 500 1,120.80 -16.14 -1.42%
The broad-based S&P 500 slumped for a third time in four days as investor concern over Europe’s debt crisis led to a 2.8 percent plunge in the financial sector. Financials opened the day flat, but swung to a loss during afternoon trading as Wells Fargo and U.S. Bancorp fell over 4 percent each.
NASDAQ 2,317.26 -36.97 -1.57%
Shares on the tech-heavy Nasdaq posted the largest loss among major U.S. indices as tech stocks plummeted 1.5 percent. Marvell Technology Group fell over 3 percent to lead the decline, while Intel and Chinese search engine Baidu dropped over 2 percent each.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Equities Reverse Decline in Afternoon Trading
May 17, 2010 at 6:37 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Euro Rallies Late on ECB Commentary
• Crude Oil For June Delivery Falls to $70 a Barrel
• U.S. Dollar Index Rises to Highest Level Since April 2009
U.S. stocks closed higher for the first time since Wednesday as rhetoric from the European Central Bank eased concerns of fiscal deterioration in the euro zone. The Dow reversed its 184-point decline from the morning session, closing up 5 points on the day at 10,625. The major turning point for risk sentiment was much needed transparency from the ECB, which revealed details of its plans to absorb excess liquidity from ongoing bond purchasing programs. The central bank said it will invite European banks to place cash in ECB holdings for one week to prevent ECB bond purchases from swelling the money supply. The commentary had ripple effects throughout the markets, as stocks rallied and the euro reversed from an intraday low of $1.2235 to the $1.2400 level. The short-term revival of risk appetite slowed the buying of precious metals as a “safe haven”, causing a slight decline in gold futures to $1224.
DJIA 30 10,625.83 +5.67 +0.05%
The Dow Jones Industrial Average closed slightly higher on the day despite only fourteen of the thirty index stocks trading in the black. AT&T, Kraft, and American Express rallied over 1.4 percent on the session, while shares of Procter & Gamble, Walmart, and Home Depot gained at least 1 percent. Alcoa and Caterpillar were the worst performing stocks, dropping over 1.7 percent each following a weak Empire Manufacturing reading for May.
S&P 500 1,136.94 +1.26 +0.11%
The broad-based S&P 500 posted a fractional gain as the telecommunications sector gained 1.1 percent on the day and consumer goods and services rose 0.7 percent. Telecom shares were led by a 3.7 percent gain for MetroPCS and a 2.9 percent rally for Sprint Nextel. Gains in the consumer sector were led by a 9.6 percent rally for the Apollo Group, after news broke that U.S. Education Deputy Undersecretary Robert Shireman will resign his post.
NASDAQ 2,354.23 +7.38 +0.31%
Shares on the tech-heavy Nasdaq posted the largest gain among U.S. indices as technology shares rallied 0.2 percent. The heavily-weighted shares of Applied Materials and Broadcom Corporation helped pace the tech sector with 1 percent gains.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
U.S. Stocks Plunge Most Since February on Greece Concerns
May 4, 2010 at 6:11 pm by CFDTrading Analyst · Leave a Comment
U.S. Session Key Developments
• Investors Flee Risky Assets on Europe Debt Concerns
• Commodities Sell Off Across the Board
• U.S. Dollar Index Rises to Highest Level in Twelve Months
U.S. stocks fell today on concerns that fiscal problems in Greece may spread into other European countries. The fears resulted in the Dow Jones Industrial Average and S&P 500 indexes dropping over 2 percent each, to their lowest closing levels since March. Investors scaled back their appetite for risk, especially in Europe, driving down equity prices in the region and pushing the yields on risky government bonds higher. Yields on 10-year Greek bonds surged 89 basis points to 9.37 percent, while yields on 10-year Irish and Portuguese bonds also rose significantly on the day. The euro fell for a second day against the U.S. dollar, driving the exchange rate below $1.30 for the first time since April 2009.
Commodities were also a victim of the risk sell-off, as crude oil fell 4 percent to $82.74 a barrel. COMEX gold futures tumbled over 1 percent to $1169 an ounce, while silver futures tumbled over 5 percent to close under $18. Investors found a home in the greenback, however, driving the U.S. Dollar Index above the 83 level for the first time since May 2009.
DJIA 30 10,926.77 -225.06 -2.02%
The Dow Jones Industrial Average had its worst day since February, as shares of Caterpillar and Alcoa fell over 4 percent on concerns that fiscal issues in Greece could trigger a global economic slowdown. Overall, 27 of the 30 Dow stocks closed lower on the day, with Pfizer, Merck, and Walmart the exceptions.
S&P 500 1,173.60 -28.66 -2.38%
The broad-based S&P 500 plunged lower as industrials and basic materials shares fell over 3 percent each. Fears of weakness in global demand for commodities triggered the sell-off in materials as Titanium Metals and Cliff Resources fell over 6 percent each. As for industrials, Flowserve, the oil services firm which had gained over 30 percent since February, dropped 5 percent to its lowest close since early April.
NASDAQ 2,424.25 -74.49 -2.98%
Shares on the tech-heavy Nasdaq posted the largest decline among U.S. indices as technology shares fell over 3 percent. Dell, Broadcom, and Google plunged over 4 percent each, while shares of Cisco, Oracle, and Research In Motion dropped at least 3 percent on the day.
Written by James Russell, CFDTrading Research
Please send any comments about this report to JRussell@fxcm.com
