US stocks drop again in light volume
Publish date: Tue, 20 Aug 2013, 10:16 AM
NEW YORK: US stocks Monday closed lower, continuing their trend downward on mediocre economic news and higher bond yields.
The Dow Jones Industrial Average dropped 70.73 (0.47 per cent) to 15,010.74.
The broad-based SandP 500 lost 9.77 (0.59 per cent) at 1,646.06, while the tech-rich Nasdaq Composite Index gave up 13.69 (0.38 per cent) at 3,589.09.
US stocks have fallen for two straight weeks on uninspiring economic data, disappointing retail earnings and higher bond yields due to the expectation that the Federal Reserve will soon taper its bond-buying programme.
There has been "nothing to really spur peoples' mindsets from when they left Friday," said Michael James, managing director of equity trading at Wedbush Securities, adding that light trading volumes accentuate movements.
"We had our worst week of the year last week and I think that sentiment is continuing into today with no real news or individual corporate actions."
James said key data later this week from the US, China and the eurozone could spur a shift in the market's thinking, as could new insights from the Federal Reserve meeting minutes Wednesday and the annual Fed gathering at the end of the week in Wyoming.
Large banks were among the biggest losers after a Federal Reserve report said the companies need to improve their capital planning processes, including better accounting for financial risks.
Bank of America fell 1.9 per cent, Citigroup lost 2.0 per cent and JPMorgan Chase sank 2.7 per cent. JPMorgan also faces a federal investigation into its hiring practices in China, its latest in a series of regulatory woes.
Apple rose 1.1 per cent following a report that it had asked its Taiwan-based supplier to begin shipping two new versions of the iPhone next month, including a lower-cost model. Apple declined comment.
Dow component Intel gained 1.7 per cent after being upgraded by Piper Jaffray, which suggested the shares were oversold on unwarranted fears that the market for personal computers was going to disappear.
Independent oil company Apache declined 4.6 per cent amid concerns the company's financial performance could be hindered by its leverage to violence-plagued Egypt.
Bond prices continued to fall. The yield on the 10-year US bond rose to 2.88 per cent from 2.83 per cent Friday, while the 30-year increased to 3.90 per cent from 3.86 per cent. Bond prices and yields move inversely.-- AFP
The Dow Jones Industrial Average dropped 70.73 (0.47 per cent) to 15,010.74.
The broad-based SandP 500 lost 9.77 (0.59 per cent) at 1,646.06, while the tech-rich Nasdaq Composite Index gave up 13.69 (0.38 per cent) at 3,589.09.
US stocks have fallen for two straight weeks on uninspiring economic data, disappointing retail earnings and higher bond yields due to the expectation that the Federal Reserve will soon taper its bond-buying programme.
There has been "nothing to really spur peoples' mindsets from when they left Friday," said Michael James, managing director of equity trading at Wedbush Securities, adding that light trading volumes accentuate movements.
"We had our worst week of the year last week and I think that sentiment is continuing into today with no real news or individual corporate actions."
James said key data later this week from the US, China and the eurozone could spur a shift in the market's thinking, as could new insights from the Federal Reserve meeting minutes Wednesday and the annual Fed gathering at the end of the week in Wyoming.
Large banks were among the biggest losers after a Federal Reserve report said the companies need to improve their capital planning processes, including better accounting for financial risks.
Bank of America fell 1.9 per cent, Citigroup lost 2.0 per cent and JPMorgan Chase sank 2.7 per cent. JPMorgan also faces a federal investigation into its hiring practices in China, its latest in a series of regulatory woes.
Apple rose 1.1 per cent following a report that it had asked its Taiwan-based supplier to begin shipping two new versions of the iPhone next month, including a lower-cost model. Apple declined comment.
Dow component Intel gained 1.7 per cent after being upgraded by Piper Jaffray, which suggested the shares were oversold on unwarranted fears that the market for personal computers was going to disappear.
Independent oil company Apache declined 4.6 per cent amid concerns the company's financial performance could be hindered by its leverage to violence-plagued Egypt.
Bond prices continued to fall. The yield on the 10-year US bond rose to 2.88 per cent from 2.83 per cent Friday, while the 30-year increased to 3.90 per cent from 3.86 per cent. Bond prices and yields move inversely.-- AFP
Discussions
Be the first to like this. Showing 30 of 30 comments
Tapering means only USA is recovering. Europe is mending, with Germany leading the way, china from strong industrial data, and Japan with more easing. I actually now see a bull forming if all these in place!
2013-08-20 11:03
if you ask me, i said tapering should have been done last Q. the pussyfooting around is actually allowing hedge managers making killing from developing countries! India and Indonesia is prime suspect since last week!
2013-08-20 11:26
India, Jkt n Thai stocks taking big hits as well and also their currencies are under continuous selling pressure...
2013-08-20 11:29
Don't think Asian country currency is under selling pressure.
That's a big possibility USD sendiri beli, syok sendiri only,since the price of Gold is not much hike in price.
2013-08-20 11:46
India's currency cartwheeled to historic lows on Monday while markets in Indonesia took a spill, evidence of how rising U.S. yields are making it harder for emerging nations to fund their current account deficits.
The turbulence heightened investor caution ahead of Wednesday's minutes of the Federal Reserve's last policy meeting, with many fearing they might only add to the confusion about when it might scale back stimulus.
That helped gold reach its highest in two months, while keeping share markets constrained across Asia.
The Indian rupee slid as far as 62.50 per dollar, emphatically breaching the previous low of 62.03. The share market lost 1.4 percent, on top of a 4 percent drubbing last Friday.
The currency has been hurt by investor frustration at the slow pace of economic reform in India, which has made it harder for the country to finance its hefty current account shortfall.
Indonesia's rupiah shed 0.9 percent to four-year lows at 10,475 per dollar, with share and bond markets weakening in the wake of data showing a sharp widening in the country's current account deficit.
2013-08-20 11:57
If Msia making loan from IMF then don't need to do UBAH already lo,automatic UBAH hehe.
2013-08-20 12:32
Possibly all of you can have chances to use sterling pound as daily expenses :)
2013-08-20 12:34
Actually when I compare RM with THB & IDR, not much significant chance.Base on observation,only USD itself is increasing order and possibly US market already over demand,hot money might flow back to Asian at 2nd half :)
2013-08-20 12:49
India rebound? its about regional issue maa..cannot effect the whole world..haha
2013-08-20 13:10
that mean later 2.30pm klse will rebound? if this is the case, really regret didn't buy, i plan to wait it drop further then only buy on thursday
2013-08-20 13:18
owh..this forum is for CPO? sorry-sorry..im looking for stock exchange discussion..
2013-08-20 13:19
@Hafiz...no signs of EPF or the local fund supporting the market. Still spiralling :(
2013-08-20 15:17
@ Hafiz...agreed. I bought in every 5.5% down.
Local funds are waiting the downgtrend to weed out the retailers, since they were left high and dry by the foreign funds during the last election. Most of the fund are not turning in as good result this quarter...pressure is on...
It is poker game from now on...it is anyone's guess how long this trend will play out. (provided Bank Negara does not intercept by utilizing our huge foreign reserve)
2013-08-20 15:50
aiyah.......foreign funds keep on selling bursa stocks.....u c ....Ringgit is keep on dropping in the past 4 weeks....
Malaysia warren buffet....i cap is keeping big portion in cash......chai boH?
2013-08-20 16:02
Hafiz my first lesson of investing is never, never grab a falling knife this the advice from those season trader i hope you did the same.
2013-08-20 16:14
There is no real lesson to be learnt from market.....the only thing (if any) the market will makeing us more "humble" and emotional stable !
2013-08-20 16:23
Today dropping % the most highest 1,will be the hidden gem that we are looking for :)
2013-08-20 16:46
fooyohhh..lets hope the ringgit fare better and dont suffer the same fate as the rupee n rupiah..
2013-08-20 17:21
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Tapering should begin I believe. Tomorrow FOMC minutes should not be too surprising with an "aye"
2013-08-20 10:57