Monday, January 16, 2012

Dow Jones Falls 49 Points On Imminent S&P Eurozones Downgrade

Despite a strong January 12 consumer sentiment report, the Dow Jones tumbled as much as 159 points before mitigating its losses to 49 points amid weak J.P. Morgan results, possible Greek default and expectations of an imminent S&P eurozones ratings downgrade.

After the market closing, S&P said it had lowered the long-term ratings of Italy, Portugal, and Spain by two notches, and the long-term ratings of Austria and France by one notch, as initiatives taken by European policymakers in recent weeks may fall short of fully addressing systemic stresses in the eurozone.

The Dow will continue to consolidate its gains (YTD: +1.7%) following the S&P’s eurozones ratings downgrade coupled with the ongoing 4Q11 reporting season. Major results scheduled are Citigroup/Wells Fargo (17 Jan); Goldman Sachs (18 Jan);
Intel/Bank of America/American Express/Google/Microsoft (18 Jan) and General Electric on 19 January.

Daily DJIA: Crucial Uptrend Line Support To Prevent Further Selldown


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