US stocks ended with big losses on Tuesday, 11 June, 2013. Stocks began the day sharply lower as overseas concerns contributed to a rise in global interest rates, which, in turn, fueled the selling of equities. The Bank of Japan's decision to maintain its policy stance underwhelmed investors who expected the central bank to address recent bond market volatility. However, the lack of relevant commentary caused investors to sell bonds and equities in favor of the yen.
For the day, the Dow ended lower by 116.6 points, or 0.8%, to end at 15,122.02. The Nasdaq lost 36.82 points, or 1.1%, to finish at 3,436.95. The S&P 500 index fell 16.7 points, or 1.02%, to end at 1,626.13.
The ten economic sectors had a mixed finish. The financial sector was the biggest laggard. Twenty seven out of thirty Dow components ended lower led by American Express.
U.S. stocks declined sharply after the Bank of Japan opted to hold its monetary policy steady, raising concerns that central banks will not provide additional economic stimulus.
World stock and bond markets were under strong selling pressure early Tuesday, with the yield on Greek government bonds pushing above 10% amid a big risk-off trading day in the market place. The U.S. stock market also started out with solid losses, but the selling pressure in U.S. equities was reduced somewhat at midday on Tuesday.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.3% on Tuesday.
Regarding economic data expected at Wall Street, today's economic news was limited to just one data point. Wholesale inventories increased 0.2% in April, and matched the consensus expectation. Inventory growth in March was revised down to 0.3% growth from 0.4%.
Most tech shares traded in-line with the broader market, but chipmakers sold off after Texas Instruments lowered its second quarter earnings and revenue guidance.
Bullion metal prices ended moderately lower on Tuesday, 11 June 2013. Comex gold futures prices on Tuesday ended the U.S. day session modestly lower and up from the daily low after hitting a three-week low early on. Gold for August delivery ended lower by $9 (0.6%) at $1,377 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. July silver ended higher by $0.28 cents (1.2%) at $21.65 an ounce on Tuesday.
Crude-oil prices ended with losses on Tuesday, 11 June 2013 at Nymex. Prices fell following a downbeat monthly forecast from the Organization of the Petroleum Exporting Countries. Light and sweet crude for July ended lower by $0.39 (0.4%) at $95.38 a barrel on the New York Mercantile Exchange on Tuesday.
The latest OPEC report forecast that global oil demand would increase by 900,000 barrels per day (bpd) in 2013's second half. That's an improvement from an increase of 700,000 bpd in this year's first half. OPEC trimmed its oil-demand-growth guidance for the year by 10,000 bpd from the prior month's report. Yet demand still should increase by about 780,000 bpd in 2013, according to the intergovernmental organization.
For every stock rising, half a dozen fell on the New York Stock Exchange, where almost 689 million shares traded. Composite volume surpassed 3.3 billion.
Indian ADRs ended lower on Tuesday. In the IT space, Infosys was down 1.2% and Wipro was down 0.7%. In the Banking space, HDFC Bank was down 3.8% and ICICI Bank was down 5.5%. In the Telecom space, Tata Communication ended higher by 0.5%. In other space, Tata Motors was down 3.1%, Dr Reddys was down 0.5% and Sterlite was down 3%.
For tomorrow, regarding economic data expected at Wall Street, the weekly MBA Mortgage Index will be reported at 7:00 ET while the U.S. Treasury will release its May budget at 14:00 ET.
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