Banking stocks lead the decline among Indian ADRs
U.S. stocks closed mostly down on Tuesday, 05 November 2013 as lower euro-zone growth forecasts outweighed a better-than-expected reading on the U.S. services sector. Equities spent the entire session climbing off their early lows after weakness in Europe set the stage for a lower open.
The Dow Jones Industrial Average fell 20.90 points, or 0.1%, to finish at 15,618.22, after the blue-chip index wiped out the bulk of a 117-point intraday drop. The S&P 500 lost 4.96 points, or 0.3%, to end at 1,762.97. The Nasdaq Composite bucked Tuesday's negative trend, rising 3.27 points, or less than 0.1%, to close at 3,939.86.
Consumer staples and consumer discretionary fared best among S&P 500 sectors, while telecom performed worst.
Among major stocks under focus, AT&T and Verizon Communications were the biggest losers among blue chips, down 2.5% and 1.9%, respectively, while Cisco Systems was the biggest winner, rising 2.2%.
Economic news out of China overnight showed its services PMI rose to 52.6 in October from 52.4 the previous month. This continues a string of mostly upbeat economic data coming out of China the past few months.
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In the European Union, the bloc's producer price index fell at the fastest annual rate in three years, it was reported on Tuesday. EU producer prices rose 0.1% in August, month-on-month, but were down 0.9% on the year. Tuesday's EU inflation numbers, combined with similar figures released last week, are worrisome as they suggest deflationary conditions could be on the horizon for the EU.
At Wall Street, today's data was limited to the October ISM Services Index, which climbed to 55.4 from 54.4 (consensus). The strength in the services sector is not a surprise. Recent employment reports have shown an uptick in services hiring; moreover, October marks the 46th consecutive month in which economic activity in the non-manufacturing sector has expanded.
Business activity strengthened in October, with the series index rising to 59.7 from 55.1. The new orders index showed continued expansion with a print of 56.8, yet that was the second straight month in which new orders activity decelerated. The aforementioned index was at 60.5 in August and 59.6 in September.
The dollar index, which weighs the strength of the dollar agaisnt the basket of six other currencies, rose by 0.3% on Tuesday.
Investors also are looking ahead to European Central Bank policy decision on Thursday, along with U.S. GDP data that day and the U.S. October jobs report on Friday.
Bullion metals fell on Tuesday, 05 November 2013 at Comex with gold settling at their lowest level in nearly three weeks on the back of a stronger U.S. dollar. Gold prices ended the U.S. day session moderately lower on Tuesday and gave up slight gains scored just after the futures market opened in New York.
Gold for December delivery fell $6.60, or 0.5%, to settle at $1,308.10 an ounce on the Comex division of the New York Mercantile Exchange. December silver inched down by 6 cents, or 0.3%, to $21.64 an ounce, extending its 0.6% loss from Monday.
Crude Oil futures fell on Tuesday, 05 November 2013 at Nymex with concerns over a glut of U.S. crude supplies and growing production pulling prices below $94 a barrel to their lowest settlement since early June. Natural-gas futures managed to close higher after their recent declines. Traders await petroleum supply updates to be released tomorrow by EIA.
Crude for December delivery dropped $1.25, or 1.3%, to settle at $93.37 a barrel on the New York Mercantile Exchange.
Indian ADRs ended mostly lower on Tuesday. In the IT space, Wipro shed 0.4% at $11.13 and Infosys gained 0.97% at $52.92. In the banking space, HDFC Bank slipped 2.09% at $35.20 and ICICI Bank was down 2.05% at $36.33. In the other sectors, Tata Motors declined 1.1% at $31.55 and Dr Reddys Laboratories fell 2.8% at $38.55.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET and September Leading Indicators will cross the wires at 10:00 ET.
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