Stock index composites in the U.S. began the trading session higher today just
after opening bell. Trend lines progressively dropped lower as the initial half
of the trading session moved along. Mixed economic data that posted earlier
today weighed on the minds of investors and ultimately resulted in lower
composite values. As the half way point in today's trading session, the Dow
Jones Industrial Average, Nasdaq and S&P 500 were all trending in negative
territory for the day. The positive news stemming from the Labor Department was
not enough to keep index trends green earlier today. According to the Labor
Department, the number of Americans making first time unemployment claims
lowered by almost 30,000 in the week ended May 14th. This data represents
another week of lower numbers for this particular reading. It is viewed as a
positive sign regarding job and economic growth. Home sales data slid again and
this pushed negatively on trend lines overall today. According to the National
Association of Realtors, existing home sales dropped .8 percent in April.
Economists had been anticipating more positive news from this reading and so the
negatively skewed data had an even greater negative affect on the stock market
today. In addition to this, the Conference Board reported today that the Leading
Indicators index dropped .3 percent in April. Signs that the economy is slowing
are emerging and investors are backing away from the riskier bets. The dollar
index was lower today and the dollar weakened versus a basket of other
currencies during today's trading sessions. As the end of day close
approached, the major market indicators were trending in the green. Stocks
rallied during the latter half of the trading session today. The Dow Jones
Industrial Average ended the session higher by .36 percent at 12605.32. The
Nasdaq ended the session higher by .30 percent at 2823.31 and the S&P 500 ended
the session higher by .22 percent at 1343.60. Stock trending was choppy today
and worries persist but the major indices in the U.S. ultimately ended green.
Author: Frank Matto
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