Stocks Lower On Weak Data/Dollar Gains
Stocks Lower On Weak Data/Dollar Gains
U.S. stocks were moving lower recently after reports on unemployment claims and the September trade balance indicated the economy is weakening further. New claims for unemployment benefits rose above 500k for the first time in seven years last week while September’s report on trade showed that both imports and exports fell. Industrial, financials and technology were leading the declines.
“There’s a battle happening in the S&P around the Oct. 27 closing price on 848.90,” said Matthew Carniol, chief currency strategist at TheLFB-forex.com. “A close today below there is not likely to be taken as a sign of positive momentum going forward. Right now it looks like the rally from 2 weeks ago, which was the biggest since 1974, got sold but many were looking for a re-test of the lows anyway. Now that they have it, we’ll see if the buyers who bought here before do so once again.”
In recent trade, the DOW was moving 0.92% lower. The broader S&P 500 was off by 0.68% and the NASDAQ by 1.65%. The dollar rising across the board, with gains of 0.12% on the euro, 1.6% on the pound and 0.74% on the yen after the BoJ was rumored to have intervened on its behalf. Crude for December delivery was down 5 cents to $56.14 per barrel while gold lost $4.60 to $713.11 per ounce.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
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