Stocks turn negative on Wall Street

The Dow gave up its gains in the last hour of trading in New York, falling below 15,000.

With under an hour to the close on Wall Street, the Dow was trading down 0.3% or 45 points at 14,965, while the S&P 500 and NASDAQ 100 both slipped into negative territory also.

The leading benchmarks had been up for most of the day, following the release pre-market of data showing durable goods orders plummeted 7.3% in July, a much larger fall than had been expected and the biggest fall since August 2012.

Last week’s minutes from the July Fed Meeting showed that many participants acknowledged the first half of the year had seen slower growth than anticipated, but felt a reduction in stimulus would happen later in the year because growth would accelerate in the second half.

This latest economic report shows that a pick-up in growth cannot be relied upon, and given the Fed has repeatedly said that any decision to reduce QE3 will be dependent on data, the odds of tapering occurring next month now look longer than before.

Tomorrow we have data regarding the housing market, with the Case-Shiller house price index, and we also have the Conference Board’s consumer confidence survey for August. Early indications of how consumers are feeling this month have been disappointing, with the University of Michigan’s preliminary reading of its consumer sentiment index dropping, so it will be interesting to see if the consumer confidence report is in agreement.

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.