The inability for the U.S. government to compromise on an agreement relevant to the U.S. debt ceiling over the weekend spelled bad news for the opening session this week in the stock market. If no agreement is reached by the looming deadline, Americans would face weaker purchasing power and rising interest rates.
Stock futures indicated a drop in index trends prior to opening bell this morning and the additional breaking news of BlackBerry maker Research in Motion preparing to cut over 10 percent of its workforce applied additional negative pressure to the marketplace today. Prior to opening bell, stock futures were red across the tracking boards. The Dow Jones was off by more than .67 percent and the Nasdaq was lower by .56 percent.
As the mid-day point in the trading session approached today, the major indices were still trending in the red. The Dow Jones was lower by .58 percent at 12,607.93. The Nasdaq was lower by .46 percent at 2,846 and the S&P 500 was lower by .53 percent at 1,338. Oil for September delivery is dropping and the dollar was losing strength to the euro and the Japanese yen. Gold futures were benefiting from the uncertainty playing out in the market today and futures pushed to an intraday high today. Shares of RIMM dropped after the announcement that the company would be laying off over a tenth of its workforce. Investor confidence drops as the trading week opens. Read More
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