Economic stimulus measures fail to spark market reaction $ROST:xnas
- Published: 06 July 2012
- Stimulus measures by the ECB, PBoC and the BoE failed to spark the US markets as investors focused on the poor services sector data. Extenuating the negative tone of markets overnight was the fact that a positive jobless claims report was also largely ignored. Attention now turns to tonight's important Non Farm Payroll data with the consensus being for a +99k gain
- Financial stocks weighed down the market with the KBW Banking Index falling 1.5%. Dow components JPM and BAC each fell 4.2% and 3.0%
- Technology stocks managed to break even after gains from Apple and Google which managed to rally by 1.8% and 1.4% respectively
- Consumer discretionary stocks managed to make gains despite weak same store sales data with ROST, KSS and LTD rising 7.02%, 6.26% and 4.49%
- Leading the losses in the Dow overnight was JPM, BAC, CVX, CSCO and INTC each falling 4.18%, 2.98%, 1.25%, 1.22% and 1.15% respectively
- DOW –0.36%, S&P500 –0.47% and NASDAQ +0.00%
- The USD made gains against the EUR after the ECB news, the AUD rallied
- Gold fell on USD strength and oil was weaker due to the poor economic data
