US stocks end mixed after heavy sell-off


    New York, (IANS) US stocks ended mixed Monday after major indexes suffered severe sell-off in the previous session.

    When the market closed, the Dow Jones industrial average lost 17.11 points, or 0.14 percent, at 12,101.46, Xinhua reported.

    The Standard & Poor’s 500 added 0.14 points, or 0.01 percent, to 1,278.18. The Nasdaq Composite Index rose 12.53 points, or 0.46 percent, to 2,760.01.

    Friday’s weak non-farm payroll report, combined with mounting concerns over European debt woes, triggered huge sell-off in the market last Friday, as three major indexes tumbled more than 2 percent. The Dow Jones Industrial Average was negative for the year.

    However, sentiment recovered a little bit on Monday as investors were expecting policy makers to come up with some measures to keep the euro zone intact.

    German Chancellor Angela Merkel said Monday that creating a European banking union can be a medium-term goal because the continent has to deepen its political integration.

    Meanwhile, finance ministers and central bank governors of the Group of Seven leading industrialized countries will hold an emergency conference call Tuesday to discuss the European debt crisis.

    In the US, companies placed fewer orders to American factories for the second consecutive month and a key measure that tracks business investment plans failed, according to the Commerce Department, which added new evidence that the recovery is weakening.

    The big losses in equity markets and weakening jobs market spurred heated talks about further stimulus by the Federal Reserve. Investors hoped that the Fed would implement the third round of quantitative easing policy (QE3) to bolster the economy.

    Art Cashin, UBS Financial Services’ director of floor operations at the NYSE, doubted the effectiveness of QE3, saying lower rates would not make a meaningful difference with banks currently sitting on trillions in excess reserves around the globe.

    Stephen Guilfoyle, an economist at Meridian Equity Partners Inc. said the market will focus on Fed’s report later in the week.

    “Don’t forget, the beige book will be released on Wednesday, and will surely be looked at even more closely than usual by traders as we inch toward that 20 June FOMC (Federal Open Market Committee) policy announcement,” he said.

    “Will we see coordinated action by the planet’s central banks? Chances are that the time is not yet upon us, but I won’t rule it out until Thursday.”