Bears Dominate Wall Street as Uncertainty Prevails
(eToro Blog) Wall Street fell fairly hard on Tuesday as investors concerns over a deterioration in the global growth outlook weighed heavily. The DJ30 logged its largest single day’s decline in several months, losing by the close more than 243 points or 1.82%; the slump was led by DuPont de Nemours which suffered a 9% drop on news that earnings expectations were unmet and an announcement of 1,500 layoffs. United Technologies also reported unexpectedly dismal earnings for the 3rd quarter.
The SPX500 also fell, albeit less sharply, losing 20.71 points or 1.44% to close at 1,413.11, dragged down by the energy and materials sectors primarily, though all key sectors closed in negative territory. One analyst believes that now that a key level has been broken, that 1,400 is certain to soon be tested. Nearly 30% of the SPX500 companies have posted their 3rd quarter results, and of those only 37% had bested revenue expectations.
The tech-heavy NASDAQ dropped 26.50 points or 0.88%, and even Apple’s anxiously awaited announcement of the new iPad Mini couldn’t help to boost share prices; Apple set the price of the 16 GB version higher than expected and as a result lost 20.67 points or 3.26% of its value.
On OpenBook, sentiment for the DJ30 is predominantly bullish, with 92% of traders buying. Earlier, OpenBook trader noxfxx earned 25.45% on a long position, and the trader’s 1.7% allocation has gained 22.7% over the last quarter. Realized equity over the same period is at its highest at 205.3%, but is substantial as well over the other reporting periods with 18.9% for last week, 114.2% for last month and 195.6% over the last 6-months out to 1-year. The trader is fairly new to OpenBook, beginning in August, but already has acquired 8 followers and 1 copier. The trader has a diverse portfolio which includes allocations in the EUR/USD, GBP/USD, USD/CAD and USD/JPY; a recently closed position in the USD/JPY in fact returned 240.72% which the trader closed with a Stop Loss as the pair’s gains began to erode.
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