Wall Street Continues to Decline, The Dows Ended Below 11,500 points:


Wall Street Continues to Decline, The Dows Ended Below 11,500 points

Wall Street Continues to Decline, The Dows Ended Below 11,500 points. The New York Stock Exchange Tuesday completed a session down slightly hesitant, marked by unexpected weakness in U.S. growth and ongoing tensions in the euro area debt: the Dow Jones lost 0.46% and the Nasdaq 0.07 %.

According to final figures, the Dow Jones Industrial Average has given 53.39 points to 11,493.72 points and the Nasdaq, dominated by technology, 1.86 point to 2521.28 points.

The broader index Standard & Poor’s 500 dropped 0.41% (4.94 points) to 1,188.04 points. The Dow Jones had not finished below 11,500 points since Oct. 17.

The trade volume is low. The market is undergoing a correction phase and I suspect that given all the economic data scheduled for tomorrow (Wednesday), it tries to stabilize,” said Peter Cardillo, Rockwell Global Capital as quoted the Associated Press.

After Monday’s sharp drop (-2.11% for the Dow Jones), the place New York has been hesitant day, buffeted by a current mixed.

In the morning, the trend was weighed down by a significant revision of U.S. growth in the third quarter, now estimated at 2.0% annualized. Analysts expected a confirmation of the first estimate (2.5%).

Although this is a bad surprise, these figures “have nothing to worry about,” he tempered Gregori Volokhine of Meeschaert Capital Markets.

The revision is justified by a drop in business inventories, which is a source of growth for the future when companies will need to replenish their reserves, he said.

However, European issues are high on the agenda, noted the analyst, while rates of public debt in most European countries have increased again Tuesday.

Spain had to accept rates of over 5% to borrow nearly three billion in maturities of only a few months. Bank stocks have once again been affected by these tensions: Bank of America lost 2.19%, 1.67% JPMorgan Chase and Citigroup 2.16%.

The indices have temporarily erased their losses at the announcement by the International Monetary Fund to create a new lending instrument to “break the chains of contagion” of financial and economic crises.

The market has not reacted to the failure of the work of the “super-committee” responsible for the debt of the United States, already anticipated with the decline Monday.

On the values ​​front, Hewlett Packard has sold 0.78% to 26.65 dollars. The IT group has published a quarterly profit drop 91% year on year, still slightly better than expected, together with the forecast below expectations.

The food group Campbell Soup (-5.27% to 31.84 dollars) also recorded a decline in profit, with sales worse than expected.

In pharmaceuticals, Merck dropped 0.97% to 33.81 dollars. The laboratory has agreed to pay a total of some $ 950 million to settle criminal prosecutions and civil cases related to anti-inflammatory drug Vioxx, sold for unauthorized information.

Rival Pfizer sold 0.32% to 18.90 dollars. Thee will buy for dollar unencrypted a start-up specializing in the treatment of cutaneous fibrosis or hypertrophic scars, Excaliard.

The rental company Netflix videos on the Internet plunged 5.40% to 70.45 dollars. It raised US $ 400 million to finance its expansion, especially in Britain.

The site deals Groupon ended on a drop of 14.80% to 20.07 dollars, just above its IPO price on Nasdaq in early November (20 dollars).

The bond market is mounted. The yield on the 10-year Treasury fell to 1.939% against 1.962% on Monday night, and the 30-year 2.910% 2.945% against the previous day.

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