Weak Corporate Data Humbles Markets
Underwhelming data released by one of the US biggest insurers facilitated the downward dive of US stocks today.
Wednesday, May 7, 2014 - 00:00
Additional corporate data also came in less than projected, which prompted a measure of shakiness that impacted daily markets during the Tuesday trade session. The technology industry is forecast to continue expanding as many are keen on the sector's strong growth prospects. The US trade deficit slimmed down this past March as exports climbed the most in roughly nine months, which signifies a burgeoning worldwide demand.
Shortly after noon in New York on May 6, the Dow Jones Industrial Average was down 0.5 percent, an 82.55 point fall to 16,448. The Standard & Poor's 500 edged down 0.42 percent, a slip of 7.98 points to $1,876.83. The Dow Jones Industrial Average was down 0.5 percent, an 82.55 point fall to 16,448. "It's not a robust season," investment manager Peter Tuz told Bloomberg on May 6. "The market is going to be range bound without a clear trend until economic statistics point one way or another, and companies' outlooks point one way or another."
Dollar dives against euro, yen
Reuters reported the monetary unit supporting the US economy also was enduring some challenges during the May 6 trade session, slipping in value against the shared currency of the European Union and the Japanese yen. Speculation is mounting that the US Federal Reserve will close the economy-spurring monetary stimulus program in October of this year. The body has said it is aiming to close the program by the end of this year, when the economy is forecast to be humming. The Fed's efforts to apply an economic salve could include an interest rate hike. "Until we hear that definitively the Fed is planning a rate rise, the euro and others will remain attractive," strategist Neil Mellor told Reuters.
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