Thursday, May 5, 2011

Daily Dow Jones Has More Downward Consolidation Ahead, 05-05-2011

Wall Street outlook: Dow down 84 points on weak economic data
U.S. stocks fell and commodities slumped, while 10-year Treasuries rallied for a fifth straight day to 3.22%, as lower than forecast growth in service industries and ADP employment damped optimism about the health of the economy. Neither report spurs much confidence ahead of Friday’s payrolls data.

U.S. stocks declined and commodities slid sharply as disappointing data on the service sector and jobs front overshadowed enthusiasm that came on corporate deal-making. Materials and energy was the worst-performing sector of 10 industry groups. Financial stocks also fell further weakening along with the broader market in reaction to economic data showing the U.S. economy is far from recovered.

The Dow Jones slid 84 points (from as much as -135 points) to 12724 as sluggish economic data overshadowed corporate deals such as ConAgra Foods offer to buy food maker Ralcorp for US$4.9 billion and Applied Materials offer to acquire Varian Semiconductor Equipment for US$4.9 billion.

Daily Dow Jones Has More Downward Consolidation Ahead.


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