US stocks finish in a mixed mode

Dow is the only key index to end in the green

US stocks kicked off the day in the green on Tuesday, 27 July 2010 riding on the back of an upward guidance from a key Dow component. But stocks slipped in the red following a disappointing consumer confidence data. Nevertheless, stocks managed to inch up in the green once again before closing. But it was only Dow that managed to end the day in the green. The other two major indices finished in the red.



For the day, that ended on Tuesday, 27 July 2010, Dow ended higher by 12.26 points at 10,537.69. Nasdaq ended lower by 8.18 points at 2,288.25. S&P 500 ended lower by 1.17 points at 1,113.84.

Five out of ten economic sectors ended higher led by utilities, consumer staples and and telecom sectors. Industrial, materials, and energy sectors featured among laggards. Healthcare sector remained solely unchanged. Seventeen out of thirty Dow components ended higher today led by Du Pont.

US stocks started the day in the green. DuPont shares were up 3.6% after the chemical giant hiked its forecast and reported results that breezed past expectations. But then stocks slipped following weak economic data.

The Conference Board in US reported on Tuesday, 27 July 2010 that consumer confidence fell in July on concerns about jobs and business conditions. July's consumer confidence index fell to 50.4, the lowest level since February, from an upwardly revised 54.3 in June.

As per the report, consumers' view of current conditions and short-term outlook fell in July. The present-situation index fell to 26.1 in July, the lowest level since March, from 26.8 in June. Those saying present business conditions are "bad" rose to 43.6% in July from 41% in June, while those saying jobs are "hard to get" rose to 45.8% from 43.5%.

The expectations index fell to 66.6 in July, hitting the lowest level since February, from 72.7 in June. Those expecting business conditions in six months to be "worse" rose to 15.7% in July from 13.9% in June, while those expecting more jobs fell to 14.3% from 16.2%, and those expected a decrease of income rose to 17.5% from 16.8%.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, erased earlier losses and rose by 0.1%.

The Nasdaq's relatively outsized loss was largely the result of weakness among Cisco, Research In Motion, and Oracle. Fellow large-cap tech plays Apple and Google were both strong, though.

Energy giant BP reported a steep second quarter loss that stemmed from the expenses related to the firm's oil spill. The firm also announced plans to sell $30 billion in assets in the next 18 months and plans to replace current CEO Tony Hayward with Robert Dudley in October.

Among other earning reports for the day, an earnings miss by U.S. Steel sent its shares to their worst loss in more than a month. Peer AK Steel actually exceeded expectations for the quarter, but that couldn't keep profit takers away.

Crude oil prices ended substantially lower on Tuesday, 27 July 2010 at Nymex. Prices dropped as consumer confidence report once again brought back worries among investors regarding overall economic recovery. On Tuesday, crude oil futures for light sweet crude for September delivery closed at $77.5/barrel (lower by $1.48 or 1.9%). Earlier during the day, prices rose to a high of $79.69.

Also, on Tuesday, natural gas for August delivery, the thinly traded front-month contract, bucked the trend to post gains. The contract added 6 cents, or 1.4%, to $4.68 per million British thermal units.

Bullion metal prices ended substantially lower on Tuesday, 27 July 2010 at Comex. Prices dropped as sellers resorted to selling of precious metals. A lower consumer confidence report did nothing to make investors return to bullion metals as alternate investment. On Tuesday, gold for August delivery ended at $1,158 an ounce, lower by $25.1 (2.1%) on the New York Mercantile Exchange. This was gold's biggest one-day drop in past three months. Prices closed below the $1,200 mark for eighth consecutive session. It also marks a decrease of 8% from gold's record high of $1,258.30 set 18 June. On Tuesday, September Comex silver futures ended lower by 57 cents (3.2%) at $17.63 an ounce.

Decliners only slightly outpaced advancers on the New York Stock Exchange, where volume topped 1.1 billion, or 89% of its one-month average.

Indian ADRs ended mixed on Tuesday. HDFC Bank and Rediff.com were the main gainers soaring 2.4% and 7.2% respectively. Tata Motors and VSNL lost 0.5% and 0.7% respectively.

Tomorrow, the economic data expected for the day are the durable orders and the Fed Beige Book. Other than that, earning reports will continue to pour in.