Indian ADRs end strictly lower
US stocks ended lower on Tuesday, 27 August 2013. The major averages settled on their lows after broad-based selling persisted throughout the session. Sellers were in control, reacting to the increased likelihood of U.S. military involvement in Syria. Global equities sold off ahead of the U.S. open while commodities received an overnight bid that held throughout the session. In addition, investors exhibited caution amid news indicating the debt ceiling will be reached in mid-October and that Congress has yet to begin budget negotiations ahead of the new fiscal year.
The Dow Jones Industrial Average shed 170.33 points, or 1.1%, to 14,776.13. The S&P 500 index lost 26.30 points, or 1.6%, to 1,630.48. The Nasdaq Composite declined 79.05 points, or 2.2%, to 3,578.52.
Twenty eight out of thirty Dow components ended lower led by with Bank of America and Microsoft. Financial and technology sectors were hardest hit and utilities fared best among the 10 major sectors, all of which closed lower.
Among economic data expected for the day, consumer confidence improved in August as the Conference Board's Consumer Confidence Index increased to 81.5 from an upwardly revised 81.0 (from 80.3) in July. The consensus expected the index to fall to 77.0.
Separately, the June Case-Shiller 20-city Home Price Index rose 12.1% while a 12.0% increase had been expected by the consensus. This follows the previous month's increase of 12.2%. Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET and July pending home sales will cross the wires at 10:00 ET.
Among major stocks under focus, J.C. Penney declined 1.4% after Bill Ackman's Pershing Square Capital Management LP sold its holdings in the department-store chain for $504 million. Other notable decliners included Advanced Micro Devices, shares down 5.3%. Shares of Goodyear Tire & Rubber advanced 2%
Commodities mainly ended higher today. The biggest gain came from October crude oil as the energy component climbed to a new high of the year of $109.32 per barrel, extending gains for a fourth consecutive session. It chopped around near the $109.00 per barrel level for most of today's floor trade and settled there with a solid 3.0% gain.
December gold traded as high as $1424.00 per ounce, its highest level since June. It booked a 2.0% gain as it closed at $1420.20 per ounce. Septemebr silver also advanced today and touched a session high of $24.70 per ounce. It eventually settled 2.8% higher at $24.66 per ounce.
For every stock rising, four fell on the New York Stock Exchange, where 683 million shares traded. Composite volume cleared 3.2 billion.
Indian ADRs slipped on Tuesday. In the IT space, Wipro shed 2.51% at $8.94 and Infosys was down 2.4% at $46.42. In the banking space, HDFC Bank fell 7.2% at $27.32 and ICICI Bank was down 5.7% at $25.46. In the other sectors, Tata Motors slipped 2.6% at $22.31 and Sterlite Industries shed 0.9% at $5.39.
Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET and July pending home sales will cross the wires at 10:00 ET.
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