Markets Drift Due On Disappointing News

Published 04/25/2014, 07:49 AM
Updated 03/09/2019, 08:30 AM

Yesterday, the American stock market had another moderate trading session, which helped indices to keep their gained positions, and even show a small increase. The stock market was again supported by good quarterly results of companies such as Apple, Caterpillar and Microsoft. Additionally, data on orders of goods of long use in March showed a growth of 2,6%, whilst analysts predicted a level of only 2,0%.

At the same time, negative news flooded the markets. The number of primary requests for unemployment benefits increased to 329 thousand from 305 thousand the previous month, when analysts were expecting the number to be on the level of 310 thousand. Also, the index of business activity in the industry of the FED of Kansas in April decreased to 12 points from 22 points a month earlier.

Additionally, the situation with the conflict in Ukraine is still influencing the market and brings even more uncertainty, as the situation in the country before the weekend keeps getting worse. This morning, the S&P agency lowered the sovereign rating of the Russian Federation from “BBB” to “BBB-“, which is definitely a very bad signal for the country and will have a bad influence on the opening of the trading session in Russia.

The trading session in the stock market in the U.S yesterday finished with the Dow Jones Industrials Average index being unchanged, and closing the day at the level of 16501,65 points. The index of the wide market, S&P 500, grew by 0,17% to the level of 1878,61 points, and the index of the hi-tech companies, NASDAQ Composite, added 0,52% and reached the level of 4148,34 points.

European stock markets already opened the trading day, and are trading in the red zone. Prices of commodities are also bargaining without any significant change. Brent Oil and WTI are losing 0,35% and 0.32% accordingly, traded on levels of $109,95 and $101,62 per barrel. Gold is up by 0,20% and is traded on a level of $1293,14 per troy ounce, Silver is losing 0,48% and is on the price of $19,59 per troy ounce.

Yesterday, the American stock market had another moderate trading session, which helped indices to keep their gained positions, and even show a small increase. The stock market was again supported by good quarterly results of companies such as Apple Inc (NASDAQ:AAPL), Caterpillar Inc (NYSE:CAT) and Microsoft Corporation (NASDAQ:MSFT). Additionally, data on orders of goods of long use in March showed a growth of 2,6%, whilst analysts predicted a level of only 2,0%.

At the same time, negative news flooded the markets. The number of primary requests for unemployment benefits increased to 329 thousand from 305 thousand the previous month, when analysts were expecting the number to be on the level of 310 thousand. Also, the index of business activity in the industry of the FED of Kansas in April decreased to 12 points from 22 points a month earlier.

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