FX.co ★ The US stock market review for 17/11/2010

On Wednesday the US stock indices closed in different directions. The Dow Jones Industrial Average fell by 15.62 points, or by 0.14%, to 11007.88 points. The Standard & Poor’s 500 grew by 0.25 points, or by 0.02%, to 1178.9 points. Nasdaq Composite edged up 6.17 points, or 0.25%, to 2476.01 points. The shares of financial sector led the falling after The Wall Street Journal announced that the US Federal Reserve System would require all 19 banks that passed the stress-tests during the height of the financial crisis to undergo one more capital appraisal and their ability to absorb the losses under the negative economic scenario. According to The Wall Street Journal, the Federal Deposit Insurance Corporation is conducting about 50 criminal investigations against former executives, directors and employees of the US banks, which collapsed since the beginning of the financial crisis.
Bank of America quotes dropped by 32 cents, or by 2.7%, to $11.62. J.P. Morgan Chase shares declined by 43 cents, or by 1.1%, to $39.18. The securities of Wells Fargo fell in price by 33 cents to $26.86.
The market was supported by the consumer sector shares that showed strong advance after release of the positive reports on income of large retail companies for a second day in a row. Target stocks surged by $2.08, or by 3.9%, to $55.62, Wholesale Club shares rose by $1.37, or by 3%, to $47.54. Though a day earlier Wal-Mart Stores and Home Depot published positive earnings reports, the shares of these companies decreased by 0.9% and 2.8% correspondingly.
As it became known on Wednesday, the US consumer price index increased by 0.2% in October amid the price rise for petrol, the forecast was 0.3% rise. The core inflation remained unchanged for the third consecutive month. Meanwhile, in October the US housing construction fell to its lowest level in 18 months, this became a reminder about the weak recovery of the housing sector. The US housing starts reduced by 11.7% and stood at seasonally adjusted 519 000, and building permits grew by 0.5% to 550 000.