11 A.M. Market Update from Briefing.com..
11:00AM: The Dow is extending its losses and has cleared some room
under 11,000. In light of today's equity weakness, the price activity in
gold is interesting as well. The June contract on gold is down 2.90 points
(-1.1%) to $272.20 today. This intraday drop is notable as it represents a
break below the $275 level that had triggered many investors' concerns
over inflation. Today's relative gold weakness is supportive of the notion
that investors are once again revisiting fears of a broader and more
protracted economic slowdown. Weakness in the commodity is leading
gold-related equities to exhibit weakness as well. The XAU is down 1.4%
on an intraday basis. Additionally, weakness in the currency market,
specifically the euro/yen cross, also suggests the markets have
recognized weakness beyond the cyclicality of IT spending. The broader
markets continue to look weak though financials and drugs are
experiencing some buy interest. XOI -0.4%, S&P Midcap 400 -1.1%,
DJTA -0.4%, DJUA +0.4%, Nasdaq 100 -3.6%, SOX -4.6%, Russell 2000
-0.9%, NYSE Adv/Dec 1091/1546, Nasdaq Adv/Dec 898/2258 |
