On Monday, November 8, "bulls" of the American stock market have decided to make a break after a rally the previous session. Recall, a surge of purchases prompted the announcement of details of the program of quantitative easing and a good Friday the data from the U.S. labor market. Indices updated two-year high, did not disappoint even lag behind S & P. However, with these events was interrupted and a weakening dollar, and on Monday the U.S. currency against the euro was trading at the beginning of November. This factor, in addition to a simple desire to record profits, was decisive for the dynamics of the market on Monday. The euro pressured and problems in Europe: Ireland looking for ways to combat the budget deficit and deal with such unpopular measures as increasing taxes and reducing government spending, renewed talk about the debt problems of Spain and Portugal. Trades in the U.S. on November 8 began a gap down during the day "bulls managed to repulse the only part of the morning's losses.
Following the auction on November 8, the Dow Jones fell by 37.24 points (-0.33%) - to 11,406.84 points, NASDAQ rose by 1.07 points (0.04%) - to 2580.05 points, S & P dropped to 2.6 points (-0.21%) - to 1223.25 points.
Weaker than the market as a whole looked like the banking sector. During Friday's session, he led the growth of the market. And now, when there was more or less suitable occasion for sales, investors rush to cut long positions because they do not see a compelling reason to continue the rally in the sector. Goldman Sachs Group Inc. fell to 1,09%, Wells Fargo & Co. - On 0,62%, Citigroup Inc. - On 1,16%, U.S. Bancorp - on 1,53%, The Bank of New York Mellon Corp. - On 0,35%, PNC Financial Services Group Inc. - By 1,3%, Morgan Stanley - to 0,26%, JPMorgan Chase & Co. - On 1,05%.
Strengthening of the dollar triggered a fall in prices for industrial metals, so the steel sector on Nov. 8 and did not shine. Lowering the cost of finished the session paper Southern Copper Corp. (-0,3%), Arcelor Mittal (-0,01%), Nucor Corp. (-0,3%), United States Steel Corp. (-1.65%) And Alcoa Inc. (-0.28%). Recommendation on the shares of the latter with "buy" to "neutral" due to the lack of significant growth potential, on Monday reviewed by experts Davenport.
Monday started a two-day meeting on the case of an environmental disaster in the Gulf of Mexico. It is already known that an independent commission under the administration of U.S. president "agreed on 90%" with the findings of internal investigation, the British BP on the causes and circumstances of the oil spill. Fred Bartleet head of the commission said that the commission found no evidence to support the conventional version, according to which managers and employees of BP, responsible for decisions on the blown up drilling rig Deepwater, sacrificed security in favor of political interests. However, investors seem to be different expectations about the outcome of the meeting, since BP 8 November became cheaper - on 1,28%, and Halliburton Co. and Transocean Ltd., on which the British giant has shifted the blame, rose in price by 4.73% and 4.85% respectively. The worst partner BP's exploding platform - Deepwater Horizon Anadarko Petroleum Corp., Its market capitalization has fallen to 4.29%.
