NEW YORK – U.S blue-chip stocks ended with slim losses on the lightest full trading day of the year on Monday, as investors stepped back after a new round of rate hikes in China.
Crude oil futures fell, stabilized at $ 91 a barrel as investors registered their concerns about China’s first Christmas move. The Dow Jones industrial average 18.46 points, or 0.16%, shed to 11,555.03, the first decline in four sessions. Procter & Gamble weighted by a decrease of 57 cents, or 0.9%, to $ 64.67, while Kraft Foods 27 cents, or 0.9%, dropping to 31.61.
Cisco Systems has helped to drop with a jump of 47 cents, or 2.4%, to 20.16 after Barron’s said in its latest issue that the investors are the giant networking outlook and positioning underestimated in the tech world’s new .
The Dow financial components were also strong, with Bank of America climbing 21 cents, or 1.6% to 13.27, while JP Morgan Chase 59 cents, or 1.4%, added to 42.67.
The Nasdaq Composite stuck on 1.67 or 0.06%, to 2667.27. The Standard & Poor’s 500-stock index advanced 0.77, or 0.06% to 1257.54, its financial sector leading to the head, while energy and consumer stocks declined.
The energy sector drop came as investors annoyed about the potential impact on global demand for commodities from China increased its main lending and deposits one quarter percentage point each on Saturday. Analysts said the move could mean Beijing is now picking up the pace of efforts to slow rapid growth. Rowan Cos 62 cents, or 1.8%, dropping to 34.02, while Massey Energy fell 62 cents, or 1.2% to 52.87, and Halliburton fell 46 cents, or 1.1%, to 39, 86.
Shares of materials companies were also influenced by concerns about the impact of the increasing interest in China. Titanium Metals shed 39 cents, or 2.3%, to 16.72, Alcoa slid 11 cents, or 0.7%, to 15.23, and Vulcan Materials lost 39 cents, or 0.9%, to 44.43 .
Stocks fall compared their morning during the session, and traders said the reaction in the market seemed to be muted by the fact that only a small part of the investment community was able to get to Wall Street after a heavy snowstorm. Just over 2 billion shares traded hands in New York Stock Exchange composite volume, making for the lightest volume of the year for a full session. The 2010 average for a full-day session is approximately 4.8 billion shares.
“It’s not really much of a response to China to raise tariffs on Christmas Day,” said Antonio David Bell, head of U.S. trading on Instinet. “It seems like there are no players in the market is already open.”
Antonio Bell, who normally takes public transport to commute to New York from central New Jersey, said he was forced to self-driving city by the wind and snow, as all forms of public transport of its environment was canceled.
Crude oil futures fell, stabilized at $ 91 a barrel as investors registered their concerns about China’s first Christmas move. But despite the worries, traders said official measures to curb growth in China was not unexpected.
“This increase in fares and further monetary tightening is simply the fact that they are growing and there is evidence of inflationary fears,” said Jim Russell, president of Russell & Co. He noted the contrast with the U.S. economy, which, although signs of troublingly recovery still has high unemployment.
“It’s a sign that China’s economy grows, and ours is pretty stagnant right now,” said Russell.
Among stocks in focus, H & R Block 89 cents, or 7%, dropping to 11.80 after the tax preparation company announced late Friday that HSBC Holdings are long-term contract for the controversial refund anticipation loans.
American International Group jumped 5.05, or 9.3%, to 59.38 after the insurer has three credit facilities totaling $ 4.3 billion designed to allow the company to lend.
source:onlinewsj
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