US stocks ended with big losses once again on Wednesday, 12 June, 2013. Stocks tumbled on Wednesday, with the Dow industrials falling for three consecutive days for the first time this year, as the Japanese yen furthered its rise and doubts about monetary policy had investors on edge. The S&P 500 spent the entire day in a steady decline as minor bounces were met with aggressive selling.
For the day, the Dow Jones Industrial Average fell as much as 140 points and ended at 14,995.23, a loss of 126.79 points, or 0.8%. The S&P 500 index lost 13.61 points, or 0.8%, to 1,612.52, with consumer discretionary pacing losses that extended to all 10 of its major industry groups. The Nasdaq Composite fell 36.52 points, or 1.1%, to 3,400.43. Dow was trading higher by 119 points earlier during the day.
The ten economic sectors had a mixed finish. The consumer discretionary sector was the biggest laggard.
In M&A news, Cooper Tire jumped 41.1% after the tire maker agreed to be acquired by Apollo Tyres for $35 per share. The purchase price represents a 42.5% premium.
The world market place was calmer on Wednesday. Industrial production in the Euro zone rose by 0.4% in April from March, for the third straight monthly rise. This report supported the Euro currency and ideas the Euro zone collective economy is on the mend, albeit slowly. Japan's Nikkei stock index was down again Wednesday and is now off around 16% from its high scored last month. The markets in China were closed for a public holiday on Wednesday.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.2% on Wednesday.
Regarding economic data expected at Wall Street, the weekly MBA Mortgage Applications Index rose 5.0% to follow the prior week's decline of 11.5%. The May Treasury Budget showed a deficit of $138.7 billion, which was slightly ahead of the deficit of $139.0 billion expected by the consensus.
Bullion metal prices ended moderately higher on Wednesday, 12 June 2013. Comex gold futures prices ended the U.S. day session with moderate gains Wednesday. A weaker U.S. dollar index and a firmer crude oil market were bullish outside markets that prompted buying in the yellow metal.
Gold for August delivery ended higher by $15 (1.1%) at $1,392 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. Earlier, it dropped to a low of $1,372.2. July silver ended higher by $0.28 cents (1.2%) at $21.65 an ounce on Wednesday.
Crude-oil prices ended higher on Wednesday, 12 June 2013 at Nymex. Prices rose despite the weekly inventory report showing unexpected rise in crude stockpiles for last week. Weak dollar pushed prices up. Light and sweet crude for July ended higher by $0.50 (0.5%) at $95.88 a barrel on the New York Mercantile Exchange on Wednesday. Prices rose to a high of $96.45 earlier during the day.
In the latest weekly inventory report, the U.S. Energy Information Administration reported that U.S. crude-oil supplies rose by 2.5 million barrels for the week ended June 7, to 393.8 million barrels. Market was looking for no change. The report also showed that gasoline supplies increased by 2.7 million barrels, while distillate stockpiles decreased by 1.2 million barrels. Gasoline stockpiles were expected to rise by 1 million barrels, while forecasts called for a rise of 1.4 million barrels for distillates.
Earlier Wednesday, the IEA said that China, the world's second-largest oil consumer, will use less oil this year than previously expected, although its total oil demand will grow by 3.8%. The Paris-based agency made few changes to its global forecast and said it expects demand will rise by 785,000 barrels a day, or 0.9%, for 2013.
For each stock rising, more than four fell on the New York Stock Exchange, where nearly 686 million shares traded. Composite volume neared 3.2 billion.
Indian ADRs ended mixed on Wednesday. In the IT space, Infosys was down 1.9% and Wipro was down 0.4%. In the Banking space, HDFC Bank was up 0.05% and ICICI Bank was down 0.06%. In the Telecom space, Tata Communication ended lower by 2.2%. In other space, Tata Motors was down 0.24%, Dr Reddys was up 0.2% and Sterlite was down 2.4%.
For tomorrow, regarding economic data expected at Wall Street, weekly initial claims, May retail sales, export prices ex-agriculture, and import prices ex-oil will all be announced at 8:30 ET. The final economic data point of the day will come in the form of April business inventories. This report is set to cross at 10:00 ET.
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