FX.co ★ The US stock market review for November 26, 2010

On Friday the US stock indices fell amid the increasing concerns over the debt crisis in Euro-zone. By the end of trading Dow Jones Industrial Average dropped by 93.28 points, or by 0.85%, to 11092.00 points. Compared to the previous session the index edged down 1%. Nasdaq Composite shed 8.56 point, or 0.34%, to 2534.56 points, but it could fixate the increase by 0.7 against the preceding week. Standard & Poor’s 500 plunged by 8.95 points, or by 0.75%, to 1189.40. Compared to the previous week the index declined by 0.9%.
The worst readings were shown by J.P. Morgan that lost 1.6%. DuPont shares decreased by 1.6%, whereas Bank of America edged lower 1.5%. Fall of stocks happened while the investors focused on Spain that is another weak link of Euro zone. Though investors are also worried by Portugal, Spain is a larger and more important country in this situation.
The euro dipped and the sales of Spanish and Portuguese sovereign bonds continued even after the Spanish Prime Minister Zapatero said that there is “absolutely” no chance that Euro-zone’s fourth largest economy would ask a help from the European Union. The European leaders are arguing whether to appropriate more funds to support the Euro-zone countries undergoing hardships, as the financial market pressure on the weakest economies of the region strengthens. The concerns over Euro-zone moved “Black Friday” sales to the background in the USA, when early in the morning the consumers all over the country sought for favorable offers, especially on consumer electronics and toys. In this case the dynamics of consumer shares was mixed. Wal-Mart Stores shares tumbled 0.5%, Home Depot fell 0.5%, TJX Cos. stocks lost 0.3%. However, GameStop shares gained 0.7%, Macy’s rose by 0.4%, and Big Lots securities advanced 0.3%.