US stocks fight hard to erase losses

Dow ends lower for fifth straight session



US stocks traded in narrow bound range on Monday, 16 August 2010. Weaker than expected economic data pushed Dow lower for the fifth consecutive session. An earning miss from home retailer Lowes pushed stocks lower earlier during the day. Weak set of economic data in the domestics and global fronts also kept the overall mood very somber throughout the day. At the end, tech heavy Nasdaq and S&P 500 managed to eke out small gains for themselves.

For the day, that ended on Monday, 16 August 2010, Dow ended lower by 1.14 points at 10,302.01. Nasdaq ended higher by 8.39 points at 2,181.87. S&P 500 ended higher by 0.13 points at 1,079.38. Dow was trading lower by 45 points earlier during the day.

Four out of ten economic sectors ended higher led by materials, technology, utilities, and energy sectors. Healthcare, telecom, and financial sectors ended lower. Consumer discretionary, consumer staples and industrials ended flat. Dow components ended mixed with Boeing, 3M and United Technologies slipping. Cisco Systems led the pack of winners.

In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.6%.

Among economic data expected for the day, data showed that the National Association of Home Builders/Wells Fargo Housing Market Index fell to 13, its worst reading since March 2009. Market had anticipated a rise to 15 from 14 previously.

In addition, Federal Reserve Bank of New York data showed a smaller-than-expected rebound in its Empire State manufacturing index, which rose to 7.1 in August from 5.1 in July.

Investors also digested data reported overnight that Japan's gross domestic product rose just 0.4% in the second quarter, much worse than the 2.3% market had expected.

Among earning data expected for the day, Lowes shares rose 0.6% after the home-improvement retailer reported increased profit in the second quarter, but remained cautious in its 2010 forecast.

Crude oil prices dropped once again and ended at its lowest level in five weeks on Monday, 16 August 2010. Prices dropped due to weak economic data that hinted towards the pace of global economic recovery. On Monday, crude oil futures for light sweet crude for September delivery closed at $75.25/barrel (lower by $0.15 or 0.2%). Last week, crude ended lower by 6.7%.

On Monday, gasoline futures closed at an eleven-week low, with the September contract settling down 2 cents, or 0.8%, to $1.92 a gallon. Natural gas also saw red Monday to the tune of a 2.3% pullback and an 11-week low.

Bullion metal prices ended higher on Monday, 16 August 2010 at Comex. On Monday, gold for December delivery ended at $1,226.2 an ounce, higher by $9.6 (0.8%) on the New York Mercantile Exchange. September Comex silver futures ended higher by 32 cents (1.8%) at $18.43 an ounce. Last week, silver ended lower by 2%.

Trading volume was light again. Specifically, share volume on the NYSE didn't even break 800 million shares.

Indian ADRs ended mixed on Monday. WNS and Tata Motors were the main gainers soaring 3.1% and 1.8% respectively. VSNL and ICICI Bank were the main losers shedding 3.1% and 0.6% respectively.

For tomorrow, housing starts, building permits and producer price index are the main economic data expected. Other than that, earning reports will continue to trickle in.