Friday, September 24, 2010

Dow Jones Industrial Average Review, 23/09/2010

Dow Jones falls 77 points amid rising weekly jobless claims and sluggish Euro-zone economic data.

Despite positive Aug’s existing home sales of 4.13m units (consensus: 4.1m) and leading indicators of 0.3% (consensus: 0.2%), the Dow dropped 77 pts to 10662, as nervous investors weighed a surprise jump in weekly jobless claims and fears on European economic health.

Weighing on sentiment for Europe much of the day was a euro-zone survey of Sept’s PMI, which fell to 53.8 (Aug:56.2), the slowest in seven months. On the other hand, the cost of insuring peripheral euro-zone government debt against default continued to rise Thursday. Irish, Portuguese, Italian and Spanish CDS spreads all widened.

Ireland's economy also contracted, adding to concerns about Europe's economic recovery. 2Q10 contracted by 1.2% compared to 2.2% in 1Q10.

Dow Jones shows negative technical readings may push index lower to 200-D SMA
DowJones23-9-2010
Source: MarketWatch

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