Blog: Spirit of Money, Financial Fluidity
by munificent

Dissenting Vote for Olympics and G-8?

I'm sorry to report this activity strains world markets and does get recognition from the global economy-

Date:   7/7/2005 9:29:40 AM   ( 16 y ) ... viewed 1155 times


London Blasts Spur Selling

By Robert Holmes
TheStreet.com Staff Reporter
7/7/2005 10:00 AM EDT

Updated from 9:40 a.m. EDT

U.S. stocks fell Thursday while bonds and gold firmed after a series of apparent terrorist explosions ripped the London transportation system.

The Dow Jones Industrial Average was recently down 35 points, or 0.3%, to 10,236. The average has been steadily firming since futures indicated a 200-point plunge in the immediate aftermath of the 4:30 a.m. EDT blasts.

The S&P 500, which traded as low as 1167 before dawn, was at 1188, down 7 points, or 0.6%. The Nasdaq slid 7 points, or 0.4%, to 2061.

"Let's see how the markets absorb these events and whether we see traditional investor buying on this dip in equity prices," said Paul Mendelsohn, chief investment strategist with Windham Financial. "Our short-term support will now become overhead resistance, should we try to rally later."

Stock markets in Europe bore the brunt of the selling. London's FTSE 100 was recently down 2.4% to 5102 and Germany's Xetra DAX lost 1.9% to 4529.

Treasury bonds, a traditional safe haven in times of crisis, jumped, with the 10-year note recently up 16/32 in price to yield 4.01%. Oil futures, which ran to a record $62.10 a barrel overnight on concerns about two Gulf Coast storms, eased, with August crude recently down 63 cents to $60.65. Oil went as low as $57.20 earlier.

"What tends to happen is people to seek out the safety debt markets," said John Canavan, market analyst with Stone & McCarthy Research Associates. "With the U.S. being the most liquid and the most safe market, you'll see a safe-haven bid into U.S. bonds."

The British pound fell against the dollar and euro, while gold was up more than 1% to $426.40 an ounce. The dollar lost about a half a cent against the euro to trade at $1.1932, while the yen firmed to 111.97 a dollar from just above 112.

Wire reports said at least five explosions occurred in the London subway system and at least one on a bus, with British Home Secretary Charles Clarke quoted as saying there had been "terrible injuries" in the rush-hour blasts. Police confirmed two deaths, though casualty reports were sketchy.
a brief address, British Prime Minister Tony Blair blamed terrorists.

"It's reasonably clear there has been a series of terrorist attacks in London," Blair said. "Obviously there are casualties, both people who have died and people who are seriously injured." Blair said the attacks appeared timed to coincide with the start of the G-8 meeting of international leaders in Gleneagles, Scotland.

News wires quoted police saying blasts were reported at the Aldgate station near the Liverpool Street railway terminal, Edgware Road and King's Cross in north London, Old Street in the financial district and Russell Square in central London, near the British Museum.

The entire London subway system has been closed and its stations evacuated.

"The key is that we'll work through this," said Bryan Piskorowski, market analyst with Wachovia Securities. "We're in the midst of a slowdown already, and the markets have been grappling with that. A lot of the major averages are already around 200-day moving averages, which is a key focal point. Unfortunately, terrorism is something we've lived with for quite a long time."

"The keys to today will be to see how many are hurt and whether or not there is any follow-through by the terrorists," added Brian Williamson, an equity trader with Boston Company Asset Management.

The incidents occurred one day after London was chosen to host the 2012 Olympics.

Asian markets closed before the explosions occurred. In Japan, the Nikkei fell 0.1% overnight to 11,590, while in Hong Kong, the Hang Seng fell 0.9% to 14,031.

The decline in crude prices affected oil stocks, with Royal Dutch (RD:NYSE - news - research) lower by 2.3%, Exxon Mobil (XOM:NYSE - news - research) down 1%, BP (BP:NYSE - news - research) falling 1.3% and Chevron (CVX:NYSE - news - research) lower by 1.1%.

Airlines also suffered, with Delta (DAL:NYSE - news - research) falling 4.3%, Southwest Airlines (LUV:NYSE - news - research) down 1.1%, and Northwest Airlines (NWAC:Nasdaq - news - research) lower by 3.4%.
London Blasts Spur Selling

Besides processing a new round of geopolitical paranoia, Wall Street faced the start of earnings season Thursday as well as the monthly deluge of same-store sales updates.

The biggest retailer, Wal-Mart (WMT:NYSE - news - research), confirmed its previous statement that June same-store sales rose 4.5% from a year ago and said that existing second-quarter earnings estimates of 65 cents a share are "reasonable." The retailer warned, however, that it continues to "experience expense pressure." Wal-Mart was recently higher by 45 cents, or 0.9%, at $49.83.

Among other retailers, Costco (COST:Nasdaq - news - research) said early Thursday that June comps rose 9% from a year ago, slightly better than expected, while Bebe Stores (BEBE:Nasdaq - news - research) reported growth of 31.4%, also beating estimates.

Wednesday night, American Eagle (AEOS:Nasdaq - news - research) and Hot Topic (HOTT:Nasdaq - news - research) reported better-than-expected same-store results, while Aeropostale's (ARO:NYSE - news - research) comps were light.

Pepsi Bottling (PBG:NYSE - news - research) said second-quarter earnings rose 4% from a year ago to $148 million, or 59 cents a share, beating estimates by 3 cents. The company also raised its full-year earnings forecast. The stock was recently up $1.70, or 6%, to $29.90.

After the bell Thursday, Alcoa (AA:NYSE - news - research) will be the first Dow component to report in this earnings season. Analysts polled by Thomson First Call expect the aluminum company to post EPS of 45 cents. Alcoa was recently lower by 26 cents, or 1%, at $25.74.

In economic news, the Labor Department said that initial jobless claims rose by 7,000 to 319,000 for the week ended July 2, in line with economists' expectations. The less volatile four-week moving average fell by 3,500 to 320,000, the lowest level in four months.

On Friday, the Labor Department will post nonfarm payroll data for June, expected to grow by 195,000. The unemployment rate is expected to remain unchanged at 5.1% as well.

9th~ I do not believe in violence or hurting anyone or bombs or terriorists-but it does seem that this is what gets attention on the current radar screen. If stocks drop, then you have the attention of the world financial markets, and these are what drives our global economy...What drives the values economy- if we voluntarily paid attention, not in a judgemental or scolding way, but in a helpful way- to issues of our brethern I wonder if there would still be such strife and violence? It is not a rhetorical question...I on't have this answer...I've lived long enough to see enough that I wonder if the earth plane is destined for these behaviors....History bears this attitude out- Another part of me so reacts to such a low expectation of our combined behaviors that I fee it unfair to not act in a more unified positive direction. And So It Is!








Add This Entry To Your CureZone Favorites!

Print this page
Email this page
DISCLAIMER / WARNING   Alert Webmaster


CureZone Newsletter is distributed in partnership with https://www.netatlantic.com


Contact Us - Advertise - Stats

Copyright 1999 - 2021  curezone.com

0.609 sec, (2)

Back to blog!
 
Add Blog To Favorites!
 
Add This Entry To Favorites!

Comments (25 of 48):
Thanks for your in… kermi… 15 y
I wonder about wom… 9thbo… 15 y
everybody knows... drofin… 15 y
Taiwan/China Next? Rikki-… 15 y
I am sorry to hear… 9thbo… 16 y
Re: I have a retir… #4933… 16 y
Nope, I don't make… 9thbo… 16 y
commercial pitch mark777 16 y
oh well... drofinnah 16 y
Yes this may well … kermi… 16 y
First hand experie… 9thbo… 16 y
Depends on age/ris… 9thbo… 16 y
10% of portfolio i… #1923… 16 y
Hi K-! Hope all i… 9thbo… 16 y
WOW who would thin… kermi… 16 y
LOL! I love Motley… JeSui… 16 y
Perhps, my experie… 9thbo… 16 y
I have a retiremen… oztin 16 y
Re: Sorry Kerme, I… kermi… 16 y
very good, but som… 9thbo… 16 y
Buy 80 acre's cezen 16 y
Sorry Kerme, I KNO… 9thbo… 16 y
You know at this s… 9thbo… 16 y
Re: YES the truth … Kermi… 16 y
YES the truth and … 9thbo… 16 y
All Comments (48)

Blog Entries (12 of 249):
Dissenting Vote for Olympics…  16 y
Over $60 a barrel  16 y
Paper Money & Politics  16 y
Perfect Storm  16 y
GE, shuffling the deck?  16 y
Archetypical Scarcity  16 y
I O U/China/ USA  16 y
Editorial on Unocal  16 y
Unocal, Bush and China  16 y R
Boone Pickens on Crude Prices  16 y
Passion and Money  16 y
China Owning UNOCAL OIL?  16 y
All Entries (249)

Blogs by munificent (10):
Yoga Path  15 y  (396)
Cold Water Blog  15 y  (269)
Quantum Intelligensia  15 y  (267)
Leadership  15 y  (67)
BaBaGee Blog  15 y  (16)
Breathwork  16 y  (16)
Desire  15 y  (5)
Sacred Sex  15 y  (4)
Apothegm  15 y  (3)
Breathwork for wholeness  16 y  (3)

Similar Blogs (10 of 185):
My Unusual Road of …  by kerminator  34 h
MeowEssay  by trouton  15 d
Absolute Truth Some…  by Kerminator  35 d
Chef Jemichel ~ The…  by chef jem  4 mon
Advices and tips on…  by Law Offices  4 mon
Manifestation Magic…  by magic44  5 mon
David Sanderson’ Ul…  by manifestation11  9 mon
Five steps on how t…  by drawmoney7  9 mon
willson 456  by kaviharshu99  11 mon
Mobile Notary  by mobile-notary  15 mon
All Blogs (1,019)

Back to blog!
 

Black Walnut Tincture
Hulda Clark Cleanse Kits