Sep 14, 2008

US Market gives up all its gains

03 Sep 2008 | 08:39

US Market gives up all its gains

In the US stock market on Tuesday, 03 September, stocks ran out of gas
in the second half. Stocks at Wall Street made a great start during the
day and Dow rose by almost 200 points at one point. But lackluster
economic reports and commodity prices slipping to new lows weighed on
investor sentiments and all three indices posted modest losses for the

The Dow Jones industrial Average ended the day with a
loss of 26.63 points at 11,516.92. The Nasdaq Composite Index, finished
lower by 18.28 points at 2,349.24. S&P 500 finished lower by 5.25
points at 1,277.58.

Eleven out of thirty Dow stocks ended in the red led by Alcoa. GM was one of the Dow winners.

Among economic news of the day at Wall Street, the August Institute of
Supply Management (ISM) Index, a national manufacturing survey,
indicated a very slight contraction in the manufacturing sector,
although it is still indicative of growth in the overall economy.
Specifically, the index slipped 0.1 to 49.9, which was nearly in-line
with the expected reading of 50. A reading below 50 reflects
contraction in manufacturing. On a positive note, the prices paid index
declined to 77.0 from 88.5, suggesting an easing in inflationary

Separately, July construction spending showed a
continued poor trend. Housing remains the weakest area in the economy,
although expects a leveling off in the months ahead.
Specifically, construction spending fell a larger-than-expected 0.6%,
versus the expected 0.4% decline. However, the current level of
spending is actually above estimates after the June change was revised
sharply higher to +0.3% from -0.4%.

The drop in commodity
prices sparked selling interest within commodity producing stocks. The
drop in energy sector and the materials sector acted as a major drag on
the broader market.

Google led the technology sector today as
the search engine giant was supposed to release a Web browser later
today. The browser stands to take some of the majority market share
away from Microsoft's Internet Explorer. Presumably, Google's browser
will help increase the company's search engine traffic.

Indian ADRs ended mixed today. HDFC Bank and ICICI Bank were the largest gainers soaring 5.2% and 5.6% respectively.

At the crude market on Tuesday, crude-oil futures for October fell
$5.75 (5%) to $109.71 a barrel. Earlier, the price touched $105.46, the
lowest since April, 2008. Commodities tumbled the most since March
today, led by energy prices, as Hurricane Gustav spared U.S. Gulf
petroleum rigs the destruction caused by Katrina and Rita in 2005.

At the currency markets on Tuesday, a sharp fall in oil prices and
rising worries about the economic outlook in Europe and Asia boosted
the U.S. dollar. The dollar rose to its highest in almost seven months
against the euro. The dollar index, a measure of the greenback against
a trade-weighted basket of currencies, was 0.9% higher at 78.02.

Volume topped 1.1 billion on the New York Stock Exchange, with
advancers ahead of decliners 8 to 7. On the Nasdaq, more than 791
million shares were exchanged, and advancers just passing decliners.

For tomorrow, there are only a handful of companies scheduled to report
earnings results before tomorrow morning's opening bell. Other than
that, August Auto sales data are scheduled for tomorrow's release. As
for official economic data, July factory orders are due.

Visit site at -

Newsroom -


funds -

Life Insurance -

Journal -