Posted on May - 11 - 2010

Hopes Of Preserving Economic Momentum May Lift Sentiment – RTTNews Daily Market Analysis

() - The major U.S. index futures are pointing to a higher opening on Wednesday, with sentiment likely to improve as European nations take prudent steps to trim their fiscal deficits. Spain, which emerged from recession, today announced spending cuts that could help avert a Greece like situation. Additionally, earnings continued to serve as a positive catalyst. A report released earlier in the day showed that the trade deficit widened in line with expectations. Some degree of restraint may be exhibited by traders ahead of some key data releases over the next two sessions.

U.S. stocks opened Tuesday’s session lower, but they recovered by the early afternoon trading and remained afloat until late trading. Thereafter, the major averages receded to close mostly lower, with the weakness reflecting the uncertainty weighing on the minds of traders regarding the sustainability of the economic recovery.

The Dow Industrials ended the day down 36.88 points or 0.34% at 10,748 and the S&P 500 Index slipped 3.94 points or 0.34% to 1,156, while the Nasdaq Composite Index edged up 0.64 points to close at 2,375.

Twenty-three of the thirty Dow components closed the session lower, with Alcoa (AA) (down 3.65%), Merck (MRK) (down 2.16%), Intel (INTC) (down 1.20%), 3M Co. (MMM) (down 1.08%) and Hewlett-Packard (HPQ) (down 1.38%) turning in some of the worst performances.

Among the sector indexes, the NYSE Arca Securities Broker/Dealer Index slid 1.09% and the NYSE Arca Oil Index fell 1.17%, while the NYSE Arca Gold Bugs Index rose about 6%.

Currency, Commodity Markets

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