US stocks fell but ended in a mixed mode once again on Tuesday, 2012 paring intra day losses partly. Earning reports dominated the day and the same checked in mixed in nature. The dollar firmed up and the euro lost its strength against the dollar. Traders remained focused on recent developments at Greece.
For the day, that ended on 24 January, 2012, Dow ended lower by 33.07 points or 0.3% to end at 12,675.75. The Nasdaq gained 2.47 points or 0.09% to end at 2,786.64. The S&P 500 lost 1.37 points or 0.1% to end at 1,314.63. Dow was trading lower by 95 points during intra day trading.
Five out of ten economic sectors ended lower led by telecom, utilities and consumer staples sectors. Consumer discretionary, healthcare and technology sectors were the winners. Materials sector was unchanged.
Seventeen out of thirty Dow components ended lower on Tuesday led by Travelers and Mac Donalds.
Although overall action remained relatively lackluster, tech stocks did well initially in their efforts to limit losses. The sectors relative strength helped support the Nasdaq at the flat line while the other major averages remained mired in negative territory with modest losses amid weakness in energy and financial sectors.
Stocks declined after the Richmond Federal Reserves regional manufacturing survey rose to 13.5 in January from 8.2 the month before.
Responses to the latest round of earnings reports varied. Among blue chips, Johnson & Johnson, DuPont and McDonalds all exceeded earnings expectations, but both Travelers and Verizon came short.
The International Monetary Fund on Tuesday cut its forecast for global economic growth in 2012 and 2013, citing growing financial strains and rising downside risks as Europes debt crisis entered a �perilous new phase.� In an update of its world economic outlook, the Washington-based institution said it expects global output to grow by 3.3% in 2012, down from 3.8% in 2011 and from a September forecast of 4%. Global output is forecast to expand 3.9% in 2013, down from a previous forecast of 4.5%.
In the currency market on Tuesday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies stayed strong throughout the day. Though it pared earlier gains partly, it still ended higher by almost 0.2%.
Adding pressure to commodity prices, the euro fell against the dollar on concerns about the outcome of talks to avert a debt default by Greece. A strong dollar makes commodities priced in the U.S. unit more expensive for holders of other currencies.
Fresh developments coming out of the European Union debt crisis on Tuesday included some dimming optimism regarding Greek officials and their private sector discussing their debt restructuring. Reports said those discussions have at least temporarily stalled. However, there was some better economic data coming out of the EU Tuesday, which worked to mitigate the stalled Greece debt talks.
Crude prices ended lower on Tuesday, 24 January 2012 at Nymex. Light and sweet crude for March delivery fell $0.63 (0.6%) to $98.95 a barrel on the New York Mercantile Exchange on Tuesday. It fell to a low of $98.25 during intra day trading.
Precious metal prices ended lower on Tuesday, 24 January 2012 at Comex. Comex futures prices ended the U.S. day session moderately lower due to some profit-taking pressure from recent gains. Prices also dropped as the U.S. dollar index was firmer and crude oil prices were weaker. Less buying because of Chinese Lunar Year Holiday was also a reason. Gold for February delivery ended lower by $13.8 or 0.8%, to end at $1,664.5 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. It dropped to $1,661 during intra day trading. On Tuesday, silver prices for March delivery fell $0.30 or 0.9% to end at $31.98.
Advancers edged past decliners on the New York Stock Exchange, where about 740 million shares traded. NYSE composite volume was 3.7 billion.
Indian ADRs ended higher on Tuesday. In the IT space, Infosys was up 1.5% at $53.59 and Wipro was up 0.5% at $10.87. In the Banking space, ICICI Bank was up 2.7% at $35.56 and HDFC Bank was up 2.7% at $31.15. Among others, Sterlite was up 2.7% at $9 and Tata Motors was up 1.2% at $22.36.
For tomorrow, MBA Mortgage Index is the only economic report expected for the day. Earning reports will continue to pour in great numbers though.
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