Posted on August - 28 - 2010
Benign Downward Revision To GDP May Help Stocks Stage Comeback – RTTNews Daily Market Analysis
() - The major U.S. index futures are pointing to a higher opening on Friday, with sentiment improving following the release of the preliminary second quarter GDP report, which showed a smaller than expected downward revision to growth. Given the uncertainty surrounding the economic recovery, the consumer sentiment report to be released shortly after the markets open and a speech by Federal Reserve Chairman Ben Bernanke due later in the day could also help in determining market direction.
Selling returned to Wall Street on Thursday after the markets saw a temporary, though unconvincing, reprieve in the previous session. The major averages opened higher and stayed mostly above the unchanged line in the morning, encouraged by a bigger than expected decline in jobless claims from elevated levels. However, the averages dipped below the unchanged line in early afternoon trading and moved steadily lower for the rest of the session.
The Dow Industrials ended down 74.25 points or 0.74% at 9,986 and the S&P 500 Index declined 8.11 points or 0.77% to 1,047, while the Nasdaq Composite Index closed 22.85 points or 1.07% lower at 2,119.
Twenty-eight of the thirty Dow components closed lower, with Cisco (CSCO), IBM (IBM), Intel (INTC), JP Morgan (JPM) and Bank of America (BAC) declining sharply in the session. However, Boeing (BA) rose close to a percentage point.
Among the sector indexes, the NYSE Arca Biotechnology Index fell 1.48, the NYSE Arca Securities Broker/Dealer Index receded 1.88%, the Philadelphia Semiconductor Index slipped 1.95%, the NYSE Arca Disk Drive Index dropped 2.49% and the Philadelphia Housing Sector moved down 1.53%. However, the NYSE Arca Gold Bugs Index gained 1.55%.
Currency, Commodity Markets
Crude oil futures are edging down $0.17 to $73.19 an ounce after gaining $0.84 to $73.36 a barrel on Thursday. Gold futures are rising $0.90 to $1,238.60 an ounce. In the previous session, the precious metal slipped $3.60 to $1,237.70 an ounce.
On the currency front, the U.S. dollar is trading at 84.685 yen compared to the 84.446 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2713 compared to yesterday’s $1.2716.
Asia
The major Asian markets ended Friday’s session mostly higher after seeing weakness early in the session.
Japan’s Nikkei 225 average opened lower and languished in negative territory until the afternoon. Buying picked up in the afternoon, and the index climbed into positive territory in late trading. The index climbed 84.58 points or 0.95% to end at 8,991.
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