Market ends mixed after whipsaw trading as Nasdaq continues to be in the red
US stock market witnessed volatile trading today and all the three indices were about to finish in the red, if not for the last fifteen minutes of trading. In the last few minutes, Dow and S&P 500 were pushed into the green. Nasdaq continued with its losing streak and the index ended in the red for the seventh consecutive day. Investors seemed to remain confused about the country’s current economic outlook.
IBM weighed heavily on the technology stocks after UBS Securities downgraded the stock citing that the company’s hardware and services sales could be pressured because IBM has the largest financial services exposure in the sector.
The Dow Jones industrial Average ended the day with a gain of 27.3 points at 12,827.5. The Nasdaq Composite Index, finished lower by 5.19 points at 2,499. S&P 500 finished higher by 4.55 points at 1,416.18.
Twenty-one out of thirty Dow stocks ended in the green today. Altria and Mc Donalds led the team of Dow winners while IBM and Alcoa led the team of Dow laggards.
Stocks today opened modestly higher today though there was no specific economic news for the day. But at the end, Technology, Industrials, Energy, and Materials - all sectors posted losses.
Mc Donalds shares closed up 1.7%, following a report that the fast-food chain would compete with Starbucks by opening coffee bars offering cappuccinos and lattes. Starbucks shares too ended almost 2% higher.
ICICI Bank and HDFC Bank ADRs end considerably higher
Among other major events of the day, President Bush today spoke about the economy. He noted that the housing slump and high energy prices are among today's challenges. He also said he is determined to make sure taxes stay low. His comments did not have any dramatic effects on the stock market.
Indian ADRs ended mixed today. But ICICI Bank and HDFC Bank ADRs ended very strong today. Both ADRs closed higher by 9.8% and 6.5% respectively. They were followed by Tata Motors whose ADr closed by higher by 3.5%.
Crude prices continued to be affected by recession fears. Crude prices dropped more than $2 today after a US report came up with much below-expected job data on last Friday. The same raised concern of a recession that would curb energy demand. Forecasts of higher-than-normal temperatures through 20 January in the Northeast part of USA also pressured prices.
Crude-oil futures for light sweet crude for February delivery closed at $95.89/barrel (lower by $2.82/barrel or 2.9%) on the New York Mercantile Exchange. Earlier, the contract hit an intraday low of $94.55. Prices are 69% higher on a yearly basis.
More than 1.7 billion shares traded hands on the New York Stock Exchange, where advancing stocks outpaced those declining 9 to 7. On the Nasdaq, volume neared 2.6 billion, and declining stocks edged just ahead of those advancing.
Tomorrow will be another day when investors will focuss on the economic reports to set the tone of trading. The monthly reading of Pending Home Sales will be announced by the National Association of Realtors in the morning providing market with the latest gauge in housing demand. In the afternoon, November's consumer credit data is scheduled for release which is indicative of consumer finances and consumer health.