US stocks register humble losses

Indices manage to curtail their losses as financial sector rebounds

US stocks witnessed modest losses on Wednesday, 05 August, 2009. All the ten sectors started the day in the red but it was the financial sector that ended relatively stronger with gains. Economic reports dominated the day. Crude prices slipped on energy department's weekly inventory report. But at the end, indices managed to curtail their losses.

The Dow Jones Industrial Average ended lower by 39.2 points at 9,280. The Nasdaq Composite Index, ended lower by 18.2 points at 1,993. S&P 500 ended lower by 2.9 points at 1,002.75.

Before market opened today, the latest ADP Employment Report indicated that 371,000 jobs were slashed in July, but that was greater than the 350,000 job losses that had been forecast. Meanwhile, job losses for June were revised lower to reflect 463,000 job cuts.

Better-than-expected earnings from Marsh & McLennan gave insurers, and hence the financial sector a good lift. Steel stocks also provided support to the materials sector after AK Steel said it would raise prices.

The Commerce Department reported on Wednesday, 05 August, 2009 that orders for U.S made factory goods rose 0.4% in June, 2009 beating market expectations. Excluding transportation equipment, new factory orders rose 2.3%.

The report detailed that overall shipments rose 1.4% in June, following 10 consecutive months of declines. Shipments of durable goods fell 0.1% in June, and were down for 11 consecutive months.

A separate report showed that the ISM Services Index for July unexpectedly slipped to 46.4 from 47 in June. It was expected to come in at 48.

Crude prices gave up earlier losses and finally ended higher on Wednesday, 05 August, 2009. Prices fell earlier during the day as energy department's weekly inventory report showed more than expected build up in crude inventories for last week. But then crude pared its losses and ended higher as dollar gave up its early morning gains. On Wednesday, crude-oil futures for light sweet crude for September delivery closed at $71.97/barrel (higher by $0.55 or 0.7%). During intra day trading, it fell to a low of $69.71.

In the currency market on Wednesday, the dollar index, a six-currency gauge of the greenback's value, rose in the early trading hours. It however slipped while the session was nearing its end.

Indian ADRs ended mixed today. WNS and Rediff were the main gainer today gaining almost 6% each. Tata Motors and Infy were the main losers shedding 1.6% and 1.2% respectively.

Tomorrow will be another busy day of for earnings and economic reports. Among economic data, new jobless claims is due at 8:30ET.