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Markets Mixed as Investors Wait for Key Jobs Release
Written by article default Wednesday, 06 October 2010 21:20
U.S. Session Key Developments* Verizon Will Get iPhone By Next Year
* Private Sector Jobs Unexpectedly Drops
Markets Mixed as Investors Wait for Key Jobs Release
U.S. Markets closed mixed at the end of the trading session as investors decided to wait for Friday’s unemployment data before making any major decisions. Trading volumes were extremely subdued throughout the day, causing the DJIA to stay within a narrow range. The index was in a band of just 55.59 points between intraday high and low, the narrowest daily range since early April. Many investors were impressed that the market was able to stay flat even after yesterday’s 193 point rally in the Dow. Also, the number of private-sector jobs in the U.S. unexpectedly dropped last month by 39,000, pointing to continued labor-market weakness that investors say could prompt the fed to support the economy. Treasurys and gold rallied as investors geared up for another round of potential Treasury buying by the Federal Reserve.
DJIA 30 / 10, 967.65 / +22.93 / +0.21%
The DJIA experienced a modest gain at the end of the trading session on Wednesday. General Electric surged 2.5 percent, making it the Dow’s best performing component. The conglomerate announced it may not increase its $1.2 billion bid for the U.K.’s Wellstream H oldings after Wellstream turned down its offer. Also, Verizon Communications saw their share price jump after The Wall Street Journal reported that the iPhone would begin mass-producing the smart phone for Verizon to sell early next year. Verizon gained 0.3 percent after the announcement. AT&T fell as a result of this announcement.
S&P 500 / 1,159.97 / -0.78 / -0.07%
The S&P 500 closed flat on Wednesday as investors had concerns over the employment situation but were also optimistic that the fed would pursue further quantitative easing. Costco Wholesale posted a 16 percent rise in fiscal fourth quarter earnings and announced that same store sales gained 5 percent in September, beating analysts’ expectations. Johnson & Johnson shares rose 14 centers after the company announced that they agreed to buy Dutch biotechnology company Crucell NV for about 42.41 billion. Equinix Inc. plunged 31 percent after the operator of Internet data centers said third-quarter sales were no more than $330 million, trailing estimates. M&T Bank Corp fell 5.2 percent as Allied Irish Banks Plc said it will start selling its stake in the company.
NASDAQ / 2,380.66 / -19.17 / -0.80%
The Nasdaq Composite Index experienced the largest decline among the three major benchmark indexes. Apple saw their share price jump after reports emerged that they will be selling their iPhone on Verizon by early next year. The benchmark index fell after Morgan Stanley downgraded semiconductor companies Xilinx and Altera to “underweight,” saying demand from Asia was steadying.
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