Positive US data keeps US indices off session lows

Last Updated on Thursday, 25 August 2011 16:50

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US Equities declined, but rallied off session lows after a round of data on the health of the housing market and manufacturing output generally beat expectations, while Fitch Ratings affirmed the US AAA credit status.
European indices also finished underwater as economic growth data from Germany to the wider Euro area showed that the recovery decelerated on the worsening sovereign-debt crisis.
Treasuries benefited from late buying as Techs added new long positions in long dated issues, while the Dollar was range bound as sentiment swung between risk aversion and risk on.
Consumer Cyclicals was the only S&P 500 sector to post an advance after earnings from Home Depot ($33.12, +5.3%) and WalMart ($51.92, +3.9%) came in ahead of expectations, while both retailers also raised their profit guidance.
Target ($49.37, +2.6%) rose ahead of its quarterly filing tonight. On a negative note, Urban Outfitters ($27.84, -6.3%) fell after discounting eroded the clothing retailer’s margins.
Financials declined, with the resumption of negative trade throughout the Money Centre Banks – Bank of America ($7.40, -4.6%), Citigroup ($29.94, -4.3%), JPMorgan Chase ($36.03, -2.3%), Wells Fargo ($24.55, -1.9%)
Dow Jones —0.67% S&P500 –.097% NASDAQ –1.24%

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

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