Wall Street suffers first down week in three

11:39, June 26, 2010      

Email | Print | Subscribe | Comments | Forum 

Most stocks finished modestly higher on Friday, led by a rally in the financial sector after the completion of Congressional financial legislation. However, Wall Street still failed to extend its gains to the third straight week as mounting concerns over economic rebound kept weighing on the market.

The Dow Jones industrial average finished Friday's session with a small loss of 0.09 percent at 10,143.81, while it suffered a weekly loss of nearly 3 percent.

The Standard & Poor's 500 index gained 3.07 points, or 0.29 percent, to 1,076.76 and the Nasdaq added 6.06 points, or 0.27 percent, to 2,223.48. However, both indexes tumbled more than 3.5 percent for the week.

Financials took the lead on Friday as the U.S. congress completed the biggest reform of financial regulations since the Great Depression after a long night of final negotiation. Although the legislation will impose new capital requirements on banks and for the first time extend comprehensive regulation to the over-the- counter derivatives market, banks will only be required to spin off their riskiest swap-trading operations.

The rally in financials helped offset the downbeat news that U. S. economy was expanding at a lower pace in the first quarter.

The Commerce Department revised down for the second time its estimate of economic growth in the first quarter of 2010 due to lower consumer spending. Gross domestic product rose at an annual rate of 2.7 percent, down from an original estimate of 3.2 percent in April.

Also adding to the gains, The University of Michigan said its final reading of June consumer sentiment was rising to a two year high of 76, while the market was expecting the index to stay at its previous level of 75.5.

On other markets, the dollar fell against all its major counterparts as investors eyed two international summits in Canada this weekend, with leaders of the Group of Eight and G20 nations coming together to discuss measures to prevent a slowdown in the global economic recovery. The euro advanced to 1.2387 dollars in late New York trading.

Separately, crude oil rose sharply on Friday to finish above 78 dollars a barrel for the first time since May 5, as investors worried oil production in the Gulf of Mexico will be influenced by a possible hurricane.

Crude oil for August delivery surged 2.35 dollars, or 3.1 percent, to settle at 78.86 dollars a barrel on the New York Mercantile Exchange. In London, August Brent crude on the ICE futures exchange settled up 1.65 dollars, to settle at 78.12 dollars a barrel.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion