Thursday, May 12, 2011

Dow Jones Tumbles 130 Points On Commodities Sell-Off, 12-05-2011

Wall Street outlook: Dow Jones tumbles 130 points on commodities sell-off
Apart from the wake of a disappointed Walt Disney results. Energy and commodity shares plunged amid worries about global demand, pulling US indexes back from their three day rally. The second major pullback in commodities prompted investors to flee from other risky assets too including stocks. A stronger dollar and data showing an increase in US fuel supplies sent crude oil prices lower by more than 5%.

In addition, China pledged to open more of its markets to U.S. companies after a two-day gathering of top officials that underscored the gap between the two nations over how fast the Chinese currency should rise. Treasury Secretary Timothy F. Geithner continued his push for a stronger yuan, which lawmakers say would boost American competiveness and job growth. Chinese officials agreed on the upward direction of the currency, while splitting on the pace. “We have differences on the degree of appreciation,” Deputy Finance Minister Zhu Guangyao said. The Dow tumbled as much as 183 points before ending 130 points lower at 12630.

Meanwhile, stronger dollar also contributed to lower commodities prices following a decline in the euro on renewed worries over the finances of Greece and Portugal.

After market close, Cisco shares slumped as the company expects its fiscal fourth quarter to show weakness.

Daily Dow Jones Is Downside Bias As 5-Days SMA Cuts Below The 10-Day SMA.
DowJones12-05-2011

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