US stocks ended in the red at Wall Street on Monday, 11 June 2012. A positive response to news that Spain is looking for funds to shore up its banking system fueled an early bid at Wall Street on Monday, 11 June 2012 but stocks then drifted into the red for modest losses. Stocks spent the first couple of hours sliding steadily off of their opening perch as market participants returned their focus to the persistently precarious conditions facing the rest of Europe. At the end, Dow Jones Industrial Average closed lower for the first session in five, as investors fretted coming events, including elections in Greece.
For the day, that ended on Monday, 11 June 2012, Dow ended lower by 142.97 points or 1.1% to end at 12,411.23. The Nasdaq lost 48.7 points or 1.7% to end at 2,809.73. The S&P 500 lost 16.73 points or 1.3% to end at 1,308.93. Dow was trading higher by 96 points earlier during the day.
Nine out of ten economic sectors ended lower led by financial, materials and technology sectors. Telecom was the sole winner.
During the weekend, Spain asked for as much as 100 billion euros in European rescue funds for its stricken banking sector. The $125 billion requested by Spain is expected to help the country's banks and by extension other European banks, in which US banks and financial services providers are heavily invested, but there remain concerns about the fiscal, financial, and economic headwinds in other corners of the continent.
With Financials under scrutiny, the sector has fell to loss, which made it the worst performing sector of the session.
On Monday, Asian and European stock markets were somewhat boosted overnight on some optimism coming out of the weekend news on the European Union sovereign debt crisis front. However, details of Euro zone finance ministers' Spain bank bailout deal worth 100 billion Euros do worry the market place. Spanish 10-year bond yields were still above 6% on Monday. Traders and investors are also awaiting Greek elections next Sunday. There was weak economic data coming out of Italy on Monday to add to notions the EU is in overall economic recession.
In other news on Monday, Goldman Sachs forecasts the raw commodity sector has bottomed out and commodity prices will begin to trend higher in coming months.
In the currency market on Monday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six currencies rose by 0.12%.
Latest Chinese data showed over the weekend that exports rose 15.3% compared to a year earlier, beating the 6.9% rise forecast. Imports were up 12.7%, also well ahead of predictions. In addition, China's industrial production grew 9.6% in May from a year earlier, versus 9.3% growth in April.
Crude prices slipped and ended below the $83 mark for first time in past eight months on Monday, 11 June 2012 at Nymex. Traders gauged the impact of a bailout for Spain's ailing banks on the prospects for the euro and U.S. dollar. Energy traders also digested Chinese economic data released over the weekend, which suggested weaker domestic conditions in May, but also showed surprising strength in exports and imports. Light and sweet crude for July delivery fell $1.4 (1.7%) to $82.7 a barrel on the New York Mercantile Exchange on Monday.
Bullion metal prices ended moderately higher on Monday, 11 June 2012 at Comex. Prices oscillated between gains and losses for the entire day. Gold for August delivery ended higher by $5.4 or 0.3%, to end at $1,596.8 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Earlier, it traded as low as $1,582.7 and as high as $1,609.3 during intra day trading. On Monday, silver prices for July delivery ended higher by 14.5 cents or 0.5% at $28.62.
For every two stock advancing four fell on the New York Stock Exchange, where more than 740 million shares traded. Composite volume neared 3.5 billion.
Indian ADRs ended strictly lower on Monday. Tata Motors and ICICI Bank lost 3.6% and 3.7% respectively. Wipro Technologies and Infosys lost 3% and 1.6% respectively.
For tomorrow, export and import prices are the economic data expected for the day. Earning reports will also continue to trickle in.
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