* CBOE Volatility Index jumped 11%
* The Dow was down 0.8%, S & P 500 index fell 1.2%, Nasdaq index fell 1.5%
Reuters, New York, November 12 - --- U.S. stocks fell on Friday, rising for the end of five weeks, China will raise interest rates prompted investors to lock in profits threatened, and re-evaluate the stock market bullish positions.
Investors worried about credit tightening in China will curb demand for commodities, dragged down energy and natural resources stocks lower. These two categories shares to the biggest drag on S & P index.
Including the debt problems of the Irish global issues, including concerns prompted investors to reassess its position, or at least option to buy protection against the risk, the Chicago TD Ameritrade's chief derivatives strategist Joe Kinahan said.
Reflecting these concerns, CBOE Volatility Index jumped 10.6%, to 20.61, from 10 for the first time since the end of the index closed above 20. CBOE Nasdaq 100 Volatility Index rose 16.4%, to 22.55.
"Every time the volatility index rose so dramatically, have shown that investors are index funds or exchange-traded options market stocks seek protection," Kinahan said.
The Dow Jones industrial average was down 90.52 points, or 0.8%, to close at 11,192.58 points; Standard & Poor's 500 index ended down 14.33 points, or 1.18%, at 1,199.21 points; Nasdaq index fell 37.31 points, or 1.46%, at 2,518.21 points.
S & P 500 Index on Friday fell below its 20-day moving average for September 1 to the first time, but managed to close above that level, suggesting slightly higher than the current 1,194 points at this level is a strong technical support.
Gains in the stock market in recent days suspended for two months, culminating last week, this round of gains, the Dow and the Nasdaq index was hit in September 2008 the first time since Lehman Brothers collapsed levels.
This week, the Dow and S & P 500 index fell 2.2%, Nasdaq index fell 2.4%. The worst of the two plates for the finance and consulting technology stocks this week, down 4%, respectively, and 3.2%.
U.S. December crude oil futures today fresh setback by 3.3%, copper down almost 3%. This makes the economic cycle, pressure-sensitive stocks, Alcoa (AA.N: Quote) fresh setback by 2.3%, to $ 13.49, down in the Road refers to the stocks ranked second.
Other sales of stocks, including Dow, Exxon Mobil (XOM.N: Quote) fell 1.2%, to close at $ 70.99. Caterpillar (CAT.N: Quote) fell 1.7% to $ 81.04.
S & P energy index fell 1.4%, while the S & P Materials Index ended down 2.2%.
This is the second time S & P 500 index closed at 1,228 regional following, and the chart may be a bearish "double top" shape. Fell below that level in April after the S & P 500 Index began the callback and eventually fell in July low.
Shanghai Stock Exchange Composite Index fell 5.16% on Friday, more than a year recorded its biggest one-day percentage decline on expectations the central bank will further raise interest rates to fight inflation, a move that could make the country's future economic growth under pressure.
"Surprisingly weak commodity market as a whole, affected by the trend of the Chinese market overnight, we need to wait developments," Houston Palantir Capital Management managing partner Tom Samuels said, "This is the first challenge may be the quantitative easing policy to boost economic capacity signs. "
In the final hour of trading, with the stock market lower, short-term options traders engaged in hedging. In the late maturity of the SPDR S & P 500 Fund (SPY.P: Quote) week period of significant increase in the sale of trading, New York WJB Capital Group's director of derivatives investment strategy, said Scott Fullman.
Boeing (BA.N: Quote) is the decline in the Dow stocks in the largest stocks, was down 3.5%, to $ 63.09, before the Sanford C. Bernstein cut its rating, saying the 787 Dreamliner delivery time may be further delayed.
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