Infosys ADrs end more than 3% lower as President of the company resigns
U.S. stock market ended Wednesday's choppy session slightly lower on 28 May, 2014, with the main benchmarks ending their four-day winning streak. Furthermore, there was no concerted leadership as the top-weighted sectors ended the day in the red.
The Dow Jones Industrial Average lost 42.32 points, or 0.3%, to 16,633.05. The Nasdaq Composite dipped in and out of negative territory and ended the day down 11.99 points, or 0.3%, at 4,225.07. The S&P 500 traded in positive territory for the most of the session but gave up incremental gains and closed 2.13 points, or 0.1%, lower at 1,909.76.
All ten sectors ended lower led by consumer discretionary, healthcare, financial and technology sectors.
The Russia-Ukraine crisis has not escalated recently and the rest of the world geopolitical front is presently quieter.
Focus in Europe is turning to next week's monthly monetary policy meeting of the European Central Bank. It's widely believed the ECB will announce further monetary policy stimulus measures at that meeting. Recent weak European Union economic data and fears of deflation setting in for the EU are solid reasons for the ECB to make a move next week.
China finance officials on Wednesday urged local governments to speed up their infrastructure spending, in an effort to prod China's general economy. The annual GDP for China is around 7%. That's about double the growth rate of other major world economies at present, but is below the annual growth rate in China of the past few years.
Economic data at Wall Street was limited to the weekly MBA Mortgage Index, which fell 1.2% to follow last week's uptick of 0.9%.
Twitter shares climbed 11% after Nomura upgraded the stock to buy from neutral,. It said investors have fully priced in the expectation that the short-messaging, social-media company will remain a niche player.
Bullion prices ended lower on Wednesday, 28 May 2014. Gold's drop to levels not seen since early February still wasn't enough to lure buyers back, as prices settled lower on Wednesday for a third session in a row. It hit a nearly four-month low. Continued technical selling pressure following sharp losses on Tuesday was featured in the gold market.
Gold for June delivery lost $6.20, or 0.5%, to settle at $1,259.30 an ounce on the Comex division of the New York Mercantile Exchange. August gold, also among the most-active contracts, fell $6, or 0.5%, to end at $1,259.70. July silver shed nearly a penny to end at $19.06 an ounce.
Crude oil futures settled lower on Wednesday, 27 May 2014, Prices settled at their lowest level in more than a week as traders bet that a weekly report will show a rise in U.S. crude supplies. July crude fell $1.39, or 1.3%, to settle at $102.72 a barrel on the New York Mercantile Exchange.
U.S. Treasury prices surged Wednesday, sending the benchmark 10-year Treasury note yield to its lowest of the year on a closing basis.
Today's participation marked an improvement over last week, but remained below average as 621 million shares changed hands at the NYSE.
Indian ADRs closed on a mixed note on Wednesday. Among banks, ICICI Bank was up 0.04% to $50.79 per ADR and HDFC Bank rose 0.84% to $45.78. In the technology space, Infosys fell 3.33% to $51.16 after the company says president & member of the board BG Srinivas will resign w.e.f. 10 June. Wipro declined 1.04% to $11.44. Among others, Tata Motors lost 2.52% to $38.72 while Dr Reddy's Laboratories rose 1.23% to $39.57.
Tomorrow, weekly initial claims (consensus 318,000) and the second estimate of Q1 GDP (consensus -0.5%) will be reported at 8:30 ET, while the Pending Home Sales report for April (consensus 1.0%) will be released at 10:00 ET.
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