Nasdaq remains the clear winner in volatile FY 2007
US Market ended lower today, Monday, 31 December, 2007, the last trading day of FY 2007. Concerns about the overall health of the economy, which had taken a toll on the market for the whole year, continued even today. A relatively “stable” housing report also failed to cheer investors.
Indices lingered in the red right out of the gate. In the afternoon hours, they shed off most of their losses but going into close, sell-off accelerated. The Dow Jones industrial Average ended the day with a loss of 101 points at 13,265. The Nasdaq Composite Index, finished lower by 22 points at 2,652. S&P 500 finished lower by 10 points at 1,468.
Nine out of ten economic sectors posted losses today. IBM, AT&T and Exxon Mobil were the main Dow losers for the day.
For 2007, the Dow Jones Industrials average gained 6.4%, while the broader S&P 500 and the tech-heavy Nasdaq Composite gained 3.5% and 9.8%, respectively. Nasdaq was a clear winner, aided by Apple, Google and RIMM stocks.
Sector wise – Energy, Technologies and Utilities were the winners during FY 2007 while Financials remained the top loser. Housing market woes arising from mortgage related problems took a big toll on the sector. Citigroup weighed heavily on the sector with the stock drubbing almost 47% on a yearly basis.
November existing home sales data does not disappoint market
Among economic news that hit the wires today, the National Association of Realtors reports November existing home sales came in at a seasonally adjusted annualized rate of 5 million. This was in-line with economists' expectations. The reading marks a 0.4% increase month over month, but sales are still down 20% compared to last year.
IBM shares today lost almost 2% following a report that it's in talks to buy Israeli storage-technology company XIV for $300 million to $350 million.
Indian ADRs ended mixed today. MTNL and Tata Motors were the only two ADRs to register gains, gaining 3.8% and 1.8% respectively. Wipro Technologies remained the topmost loser shedding 2.3%.
Oil prices fell for the second consecutive day today. Monday, 31 December, 2007. But today’s fall was limited. Prices fell as dollar strengthened against its rival currencies for the first time in six sessions. Nevertheless, crude ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
The markets will be closed tomorrow in recognition of the New Year holiday. Investors will look for economic data to help set the tone of trading on Wednesday and for the New Year. The Commerce Dept.'s report on Construction Spending and the Institute for Supply Management's national survey of manufacturing conditions are the expected main reports.