US markets end mixed

After a day of choppy trading, US stocks ended mixed but mostly higher today, Monday, 09 June, 2008. Oil prices dropping by more than $4 and a better than expected housing report were the main reasons behind today’s rise. But Nasdaq was the only index to end in the red. After last week’s steep decline in the market, traders heaved a sigh of relief after today’s trading. However, weakness in tech and financials limited the broader market's advance.

The Dow Jones industrial Average ended the day with a gain of 70 points at 12,280. The Nasdaq Composite Index, finished lower by 15 points at 2,459. S&P 500 finished higher by 1 points at 1,361.

As per National Association of Realtors, April pending home sales unexpectedly rose 6.3% on a seasonally adjusted annual rate. Market expected sales to fall 0.4%. Market welcomed this news in a time when housing has been always playing the spoilsport.

Dow component McDonald's was one of the Dow winners today after it said that its global same-store sales rose 7.7% in May. International comparable sales rose 16.0%, or 9.1% in constant currencies. U.S. comparable sales rose 4.2%.

Lehman Brothers weighed on the financial sector today after a second quarter earnings preannouncement from the company topped headlines. The struggling Wall Street firm reported that it expects a massive $2.8 billion second quarter loss and plans to raise $6.0 billion in new capital in common and preferred stock offerings.

The tech sector faced selling pressure as shares of Apple and Google fell. Apple shares fell 2.2%, after CEO Steve Jobs unveiled a new version of the iPhone wireless handset at the firm's annual developer conference in San Francisco.

Profit booking and some comments from some OPEC minister led crude prices slipping by more than $4 today. Price slipped after Saudi Arabia's oil minister, Ali al-Naimi, called for a meeting of oil producing and consuming nations to discuss how to deal with record prices. Crude-oil futures for light sweet crude for July delivery today closed at $134.35/barrel (lower by $4.19/barrel or 3.1%) on the New York Mercantile Exchange.

Oil prices had shot higher by almost $11 a barrel on Friday, 06 June, 2008 scoring their biggest one-day gain in dollar terms as talk about a potential Israeli attack on Iran combined with a slide in the U.S. dollar. Last Friday, prices closed at $138.5. That was an all-time closing high.

Saudi Arabia reportedly said today that it had increased production this month and has told all the oil companies it deals with that it's ready to provide them with additional supplies, if needed.

At the currency markets on Monday, the dollar rose against the euro for the first time in three sessions as U.S. policy makers indicated they are concerned about the currency's 7% drop this year.

Trading volumes were light with 1.35 billion shares trading on the New York Stock Exchange, where declining issues topped decliners by a ratio of 2 to 1. On the Nasdaq stock market, 924 million shares traded, with decliners topping gainers by 19 to 9.

For tomorrow, the economic calendar focuses the April trade balance report.