Wall Street blues after home resales
The U.S. stocks closed lower Tuesday, penalized by the publication of statistics of home resales already been added to fears surrounding the health of perennials the world's biggest economy.
The Dow Jones closed with a loss of 133.96 points, or 1.32%, to 10,040.45. The Standard & Poor's 500 broad, fell 15.49 points, or 1.45%, to 1051.87 while the Nasdaq Composite Index ended down 35.87 points (-1.66%) to 2123 76.All three indexes have ended at levels unprecedented in seven weeks.
Sales of existing homes in the United States in July suffered an unprecedented fall that brings them back to their lowest level in more than 15 years, a deteriorating just confirmed that the U.S. recovery loses much of its momentum.
Shortly before the publication of these statistics, Charles Evans, president of the Federal Reserve Bank of Chicago, said that the risk of a relapse into recession in the U.S. economy had increased in the last six months even if such an outcome is unlikely in his eyes, a recovery "modest" is being said.
Home resales fell 27.2% last month compared to June to 3.83 million units annualized, the lowest level since May 1995, announced the National Association of Realtors (NAR) The American Federation of Estate Agents. Economists polled by Reuters were expecting a much less pronounced decline from 12.0% to 4.7 million.
This statistic has led to a decline in property values.The PHLX Housing Index was down by 1.05%.
"The economic statistics of the day were added to a long list of evidence showing that there is a slowdown in the economy," said Michael Sheldon of RDM Financial.
"Investors were expecting a mediocre statistics, but today's figures have revealed the extent of the disaster."
These events have however not been taken on renewed vigor of the activity on the front of mergers and acquisitions.
Hewlett-Packard and Dell continued to struggle to capture the data storage specialist 3PAR.According to Bloomberg, Dell is preparing to improve its offer after Monday HP has $ 1.6 billion on the table.
3PAR has closed up 3.64% to 27.04 dollars while HP has lost 1.65% to 38.39 dollars and Dell fell 2.97% to 11.58 dollars.
The medical equipment maker Medtronic has also plunged 10.80% to 31.21 dollars after reporting a drop in sales and lowered its forecast.
The announcement weighed on the sector and the Health Sector Index S & P lost 2.03%.