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.
The Dow fell for a fifth successive session, dropping 0.46% or 74 points to stand at 15,815 with half an hour left to the close on Wall Street. The S&P 500 suffered a similar decline, falling 0.43% to 1785.4.
Microsoft was a notable drag on the Dow, dropping 2.7% after Edsel Ford, a director at Ford Motor Co, said CEO Alan Mulaly would not be leaving until the end of 2014. There has been some speculation that Mr Mulaly, who is credited with turning around Ford’s fortunes in recent years, might take over the helm of Microsoft from the departing Steve Balmer, who is set to retire by the end of next summer.
Shares in Apple rose 0.87% after an article in the Wall Street Journal claimed the iPhone maker had signed a deal to sell phones on China Mobile's 4G/LTE network. Such a move would open up a huge market to Apple, with China Mobile enjoying more subscribers than the US population twice over. China Mobile responded to the article by saying, ‘We are still negotiating with Apple, but for now we have nothing new to announce.’
Atlanta Fed chief Dennis Lockhart today said in a speech that he thought the Fed should issue an explicit timetable for an end to stimulus once the central bank decides to reduce its stimulus. ‘If and when the FOMC arrives at a decision to wind down asset purchases, it’s my view that it will be helpful to the transition process to provide as much certainty as possible about how this will be done,’ he said. I would agree that such transparency would likely aid stability in the financial markets.
Tomorrow attention will be focussed on November’s payroll and unemployment data and the ensuing repercussions for the Fed’s programme of quantitative easing.