Tuesday, July 12, 2011

Dow Jones Drops 59 Points To Record Its 3rd Straight Loss, 13-07-2011

Wall Street recap: Dow Jones drops 59 points to record its 3rd straight loss
The Dow Jones rose as much as 65 points intraday when minutes of the 20-21 June FOMC meeting showed that officials would consider adding new stimulus into the economy if needed.

However, the gains were erased and the Dow declined 59 points to end at 12447 after Moody’s downgraded Ireland’s debt to junk status. European Union leaders are expected to hold an emergency meeting on Friday after finance ministers acknowledged for the first time that some form of Greek default may be needed to cut Athens' debts and stop contagion to Italy and Spain.

Meanwhile, investors are also adopting a “wait-and-see” attitude on the outcome of debt-ceiling and budget talks before 2 August, when the government says it will no longer be able to pay its bills without raising the US$14.3trn debt ceiling.

The Dow will remain volatile in the near term with major support near 12200 (61.8% FR) amid weakening technical readings. 2Q11 corporate results and ongoing economic data release.

Major results and economic announcements for the rest of this week include: Google/JP Morgan (14 July); June retail sales/industrial production/weekly jobless claims (14 July); Citigroup (15 July); July consumer sentiment index (15 July).

Daily Dow Jones Industrial Average Is In Downside Bias

Source: StockCharts.com

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