Boeing drags Dow back after long rally

Today may have finished on a bit of a downer for share prices, but overall it has been a mighty impressive week for the major US stock indices.

The Dow, S&P 500 and NASDAQ are all set to finish the week substantially higher, with the S&P and Dow both currently at levels that would mean the second best weekly performance for the whole of 2013 so far.

It's been an odd day for Boeing though. Earlier in the day it was hitting its highest price ever, and then later on it was leading the list of laggers. Two separate incidents in the UK involving its Dreamliner 787 sent its share price plummeting (down nearly 5% in the last hour of trading on the New York Stock Exchange).

The Philadelphia Fed’s Charles Plosser has said today that he wants tapering to begin in September and stimulus to finished by the end of the year, which are the strongest comments we have heard yet from a Fed official regarding tapering (the strongest actions have come from serial-dissenter Esther George though).

The fact that the market is only slightly off suggests that the market has taken these remarks for what they are – the opinion of an individual that does not represent the majority. Specifically, his suggestion that the 6.5% unemployment and 2.5% inflation thresholds should be treated as automatic triggers stands in direct contradiction to Ben Bernanke’s words on Wednesday.

Consumer sentiment dropped slightly in July according to the University of Michigan’s widely-followed survey. The preliminary reading for its consumer sentiment index fell to 83.9 in July, down from June’s final reading of 84.1. The current conditions component is very strong, but the expectations component showed weakness. Overall this is not a bad reading and I wouldn’t expect it to have any major negative implications for the financial markets.

We have manufacturing data on Monday relating to the New York area with the Empire State Manufacturing Index and more earnings from the banking sector with Citigroup reporting for its second quarter.

Technology giant Oracle is set to switch its shares’ listing from the NASDAQ to the NYSE on Monday, which is the biggest listing defection I can recall.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.