Sep 14, 2008

Dell?s figures weighs on US Market

01 Sep 2008 | 09:14




Dell?s figures weighs on US Market



Economic reports dominated the week in the US Market that that ended on
Friday, 29 August, 2008. Indices registered modest losses for the week.
But the losses were mainly due to the last trading day of the week, ie
Friday, itself, when stocks registered substantial losses after Dell
Computers reported lesser than expected earnings figures and also gave
a cautious guidance. Volume totals at the NYSE were at their lows for
the year in each of the first three sessions this week, and didn't
exceed 1.0 billion shares all week.

The Dow Jones Industrial
Average lost 84.1 points for the week to end at 11,543.96. Tech - heavy
Nasdaq lost 47.2 points at 2,367.52. S&P 500 lost 9.37 points to
end at 1,282.83.

The headliner of the week was the second
quarter real GDP report which was revised up to 3.3% from 1.9%.
Favorable revisions to net exports, inventories and personal
consumption were the major drivers for the upgraded measure of
growth.The revised GDP number showed the economy was a long way from
recession in the second quarter.

A gloomy earnings report from
Dell and a report that personal income fell by a larger-than-expected
amount in July interrupted what was shaping up to be a winning week for
the market. That combination led to a broad-based selling effort Friday
ahead of the holiday weekend. Dow lost a huge 172 points on that day.


Among economic news on Friday at Wall Street, a report from the
Commerce Department showed personal incomes fell 0.7% last month, the
biggest drop since August 2005, as extra cash from government stimulus
checks dried up. At the same time, consumer spending decreased 0.4% on
a real, or inflation-adjusted, basis, the lowest since June 2004.


On the positive side, the University of Michigan/Reuters index rose to
63 in late August, up from a reading of 61.7 earlier in the month and
from 61.2 in July. The index had touched a 28-year low in June.


Also, the Chicago purchasing managers index rose slightly to 57.9 in
August from 50.8 in July. Market was generally expecting a small
decline in the index.

October crude closed at $115.46 per barrel
in New York on Friday, down 13 cents for the session and down 7.3% for
the month. It was up 0.8% for the week. Traders remained wary over
Tropical Storm Gustav's potential to hurt energy output in the Gulf of
Mexico, especially ahead of a three-day holiday weekend

At the
currency markets on Friday, the dollar lost some ground earlier in the
morning but then regained the ground as investors were cheered by
upbeat U.S. consumer sentiment data, and was on track to post both
weekly and monthly gains. The dollar index, a measure of the greenback
against a trade-weighted basket of currencies, was at 77.313, up from
77.184 in previous session. It was up 0.7% for the week, and 5.6% for
the month of August. The dollar has made an impressive run in recent
months. Quarter-to-date it is up 5.7%. Year-to-date, the Dollar Index
is up just 0.9%.



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