While last week's stocks provided a good boost to the economy, the last day proved to be a miserable one for the stock market. The stock closed mostly lower as compared to last week's gains, with gold and oil prices moving downward. The stocks got lowered mainly due to low trading as the bond market and the government offices were closed for Columbus Day Holiday. However, hopes are still there as the third quarter results are yet to receive.
Weakness in crude and gold basically set the stage for the sell-off in equities, as the gold and the oil have been rallying with the equity market for weeks. However, gold for December delivery fell $ 8.50%, or 1.1% to $ 738.70 an ounce on the New York Mercantile Exchange. The dip in the oil prices at first provided a measure of support to the Dow Jones Transportation Average (-1.2%), but ultimately, it couldn't exceed a third quarter.
Energy stocks were a real set back too and contributed to the weakness as the energy sector (-0.8%) followed crude prices lower. The decline in crude prices (-2.8% to $ 78.97) was due to the bounced dollar and belief that warm fall weather in major markets will lead to a build in inventory stockpiles.
Other updates includes about the Dow Jones Industrial Average that fell 22.28 points or 0.16% to 14,043.73 with 24 of its 30 components lower. The Broader stock indexes were mixed. The Standards & Poor's 500 index fell 5.01 points, or 0.32% to 1,552.58. While the technology heavy Nasdaq composite index rose 7.05 points, or 0.25% to 2,787.37.
Among the brighter sectors were the technology stocks. The sector picked up modest gains as the search giant Google Inc closed at a record high of $ 610.69 providing a good boost to the tech-heavy Nasdaq. Trading volume was low, with many investors on the sidelines for the holiday. Declining issues outnumbered advancers by nearly 2 to 1 on the New York Stock Exchange, where the volume came to 852.1 million shares, down from 1.26 billion shares. On the Nasdaq, nearly 1.5 billion shares exchanged hands and decliners topped advancers 4 to 3.
The dollar index rose 0.6% against other key currencies. The strength of the dollar increased amid the meeting of European finance ministers, who are trying to apply downward pressure on the euro. The euro has risen to high records due to a sliding dollar, the last week. Overseas markets report says, Japan market was closed for a holiday. Britain's FTSE 100 fell 0.83%, Germany's DAX index fell 0.35% and France's CAC-40 declined 0.24%.
The credit market seems quite tighter than it was earlier as some companies still appear to have an urge for deal making, which often involves taking a debt. However, difficulties are towards the end in case of some companies particularly in the financial and the housing sectors, as report shows good earnings. The problems mainly aroused due to the disturbance in the credit markets amidst overly leveraged debt and defaults in the subprime mortgages. But now it seems market is firming up and companies are coming back into play.