US Indices and Financial Market Spread Betting Report

Posted on | October 28, 2009 |

The Dow was down again this afternoon as global markets continued to slump following the release of downbeat economic data.

It was announced today that new home sales in the US fell by 3.6% in September, creating expectation that the housing market may slow down once the government’s tax credit scheme expires.

Goldman Sachs was also downbeat on the US economy today, cutting its third-quarter US gross domestic product growth forecast from 3% to 2.7%.

There was some positive news, however, as orders for US durable goods rose by 1% in September – the fourth time in six months and an improvement on the previous month’s 2.6% drop. Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, said: ‘It’s an encouraging bounce back.

In the current quarter, the economy will be supported by a pickup in business investment. The recovery has some legs, albeit weak ones.’ [1]

By 3.30pm (London Time) the Dow Jones Industrial Average was at 9860.55 (-0.22%) while the S&P 500 was at 1053.94 (-0.89%). The Nasdaq was also down at 2087.08 (-1.37%).

There were some winning stocks all the same, particularly in the communications sector. Verizon rose 2.23% to $29.85 while AT&T rose 1.83% to $26.07. Coca-Cola and Kraft also rose to $53.94 (+0.90%) and $26.92 (+0.71) respectively.

On the losing side, Alcoa fell 0.47% to $12.34; Walt Disney lost 2.48% to hit $27.47; American Express dipped 2.31% to $35.12 and General Electric was down 2.14% at $14.61.

In the UK, the FTSE continued to decline this afternoon, reaching 5105.12 (-1.84%) at 3.50pm. Afternoon winners included Friends Provident at 81.55p (+3.29%) and Diageo at 970p (+1.15%).

Supermarkets were also represented, with Tesco rising to 402.70p (+1.73%) and Morrison’s gaining 1.39% at 277.70p. Mining firms dominated the losers, with Lonmin and Xstrata both dropping 7.45% and Kazakhmys losing 6.86%.

Source: [1] Bloomberg News (28 October 2009)

By Anthony Grech, Research Analyst, IG Index.

Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The above comments do not constitute investment advice and neither IG Index nor Spread-Betting.org accept any responsibility for any use that may be made of them.

IG Index is Authorised and regulated by the Financial Services Authority, register number 114059.

Comments