Wall Street weighed down by distrust, the Dow falls below 10,000
August 26, 2010 – 6:05 pmWall Street ended down sharply on Thursday, the Dow Jones closing below 10,000 points for the first time since early July, the eve of a review, probably on the decline, the growth figures in the second quarter and a major speech the President of the Federal Reserve.
The decrease of the registered unemployed announced earlier in the day was not enough, far away, to reassure investors about the outlook for the U.S. economy.
The caution and even distrust, and have prevailed on the eve of the annual meeting of major world central bankers in Jackson Hole, Wyoming, which will provide an opportunity for Ben Bernanke, the Fed chairman, to the point on a global situation which has clearly darkened in recent weeks on the U.S. side, while the euro area with good surprises in store for the markets.
The Dow Jones lost 74.25 points, or 0.74% to 9985.81 points and the Standard & Poor's 500 declined 8.11 points (-0.77%) to 1047.22 points while Nasdaq Composite showed a decline in closing 22.85 points (-1.07%) to 2118.69 points.
The day had yet begun in the green after the announcement of a larger decline than expected new applications for unemployment benefits last week, to 473,000 against 490,000 expected.
But the average enrollment in four weeks, considered a better indicator of labor market has reached its highest level in nine months, which has fueled the anxiety of many of the investors.
TECHNOLOGY AND ENERGY ASSENTED
"What we see is from 450,000 to 460,000" new registrations per week, "said Marc Pado, U.S. strategist at Cantor Fitzgerald."But we stick to numbers that do not correspond to growth of the economy."
The second estimate of gross domestic product (GDP) of the United States in the second quarter, which will be released Friday at 12:30 GMT, also concerned investors.
Economists and analysts polled by Reuters expect an average growth reduced to 1.4% against 2.4% first estimated a month ago.Their estimates ranged between 0.9% and 2.2%.
With the exception of raw materials, stable, all the major sectoral indices S & P New York finished the day in the red, energy and high technologies posting declines in excess of 1%.
Cisco Systems and IBM posted the largest declines in the Dow Jones, respectively 2.36% and 1.99%.
Some coal producers have been affected by lower natural gas prices, income to a low of 11 months, which could encourage utilities to switch fuels.
Massey Energy has dropped 4.15%.
The main New York indexes now accuse a decline of nearly 7% from their peak of last August 9.And the percentage of investors saying to expect an increase in the stock market over the coming months fell to its lowest level since March 2009, according to the American Association of Individual Investors.
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