Wall Street faces another dip due to rising oil prices
2008-06-19 15:58:34 (GMT) (Caymanmama.com - Business News)Wall Street (CaymanMama.com) — On Wednesday, Wall Street saw another low while the Dow had a fallen below the mark of 12,000 points for the first time in the past three months due to rising oil prices in afternoon before the expiry of key options during the day. The industrial average for Dow Jones closed on 1.1% and that of Standard and Poor was 0.9%.
However, NASDAQ was down with 1.1% amidst the volatile market scenario. The real reason behind the volatile nature of markets was the investors were unwinding themselves ahead quadruple witching on Friday. Basically, quadruple witching stands for a day when range for options expires during four times in a year.
Due to weak markets and poor results from Morgan Stanley and Fed Ex, on Wednesday markets saw sell off. The selling process attained momentum at afternoon when financial stocks joined to the disappointment of Morgan. According to Jefferies and Company Inc.’s marketing g strategist, Art Hogan, “A couple of household names have come out showing how difficult it is to make money in this market.”
With the increasing oil prices, investors are unable to bear the increasing burden. However, Hogan said that the price of crude oil will increase in the near future. He continued, “It is impossible to separate corporate America from energy prices and although we are down today and that is good news, we are being reminded that the high energy prices affect business.”
On Thursday, one will see new economic report from the Labor Department that will be dealing about unemployment benefits. Conference Board will be releasing the report on index of Leading Indicator. Amidst all these reports, Federal Reserve of Philadelphia will be announcing its June survey. However, Fed Ex’s loss tallied $241 million due to rising fuel prices and slowed growth rate.
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