Stocks Quiet As The Dollar Weakens
Stocks Quiet As The Dollar Weakens
Relative calm was prevailing in U.S. equity markets on Monday morning. Equities were moving slightly lower and the dollar was weakening across the board after the G20 failed to ignite any enthusiasm and Citigroup announced it was laying off 53,000 workers or 20% of its global workforce. The plans were confirmed on the company’s Web site and discussed with employees at a large meeting Monday morning.
There was some evidence that consumers are using their credit cards less often, and are plan to cut back even further as the economy weakens.
Wal-Mart, the nation’s largest retailer, has noticed that credit card use among its customers had declined. “Customers have maxed out on their credit limits,” Eduardo Castro-Wright, the head of Wal-Mart’s U.S. stores, said at a recent conference. “They can’t use (credit cards) more.”
Meanwhile, a survey conducted for Reuters by America’s Research Group regarding holiday shopping intentions found that 60% of shoppers plan to use credit cards less this shopping season.
In recent trade, the DOW was lower by 0.51%. The broader S&P 500 was off by 0.55% but the NASDAQ was up by 0.29%. The dollar was weakening across the board, moving 1.04% lower against the euro, 2.02% against the pound, 0.02% to the yen and 1.67% against Australia’s dollar. Crude oil for December delivery was recently trading down 12 cents (-0.21%) to $56.92 per barrel while gold for December delivery was gaining $2.20 (0.3%) to $744.70 per ounce.
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