Reported by: Eric CRWE Newswire Middle East correspondent
Dow Jones Industrial Average fell 1.39 percent to 10,271.21 shedding almost 144.33 points in today’s trading session. Standard and Poor’s 500 index declined 1.69 percent to 1,075.63 points which is its lowest level since July 21st, 2010 whereas NASDAQ Composite Index dropped by 1.66 percent losing 36.75 points to close at 2,178.95 level for the day.
Out of every five stocks four faced correction in today’s trading session at New York Stock Exchange whereas total traded volume stood at 1.1 billion shares for the day. Over all bearish sentiments were maintained in the market due to disappointing economic reports creating concerns about the sluggish economic recovery.
The US Labor Department disclosed that unemployment claims have increased considerably in the last week whereas the Federal Reserve of Philadelphia added more negativity for the market by reporting that manufacturing activity in mid Atlantic region had plunged for the month of August 2010. Philadelphia Federal Reserve index for manufacturing survey stood in the negative zone with 7.7 for August as compared to positive of 5.1 for the month of July.
As investors shifted their focus toward Treasury bonds as a much safer investment, interest rates fell sharply.
As the market was on a selling spree due to the negative economic indicators, Intel announced acquisition of McAfee Inc for an all cash deal of $48 per share ending with a total acquisition of $7.68 billion. McAfee shares gained 57.1 percent to close at $47.02 in the days trading session with total volume of 185.64 million shares but the news wasn’t enough to offset the impact of sluggish economic data. Intel Corp on the other hand faced correction of 3.1 percent to close at $18.98 for the day
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