US MARKET 6.7.2009

Stocks cut losses, ending mixed Monday, as worries about the duration of the recession were tempered by a rally in select blue chips. Stocks slipped through the early afternoon as investors eyed falling oil prices and a better-than-expected report on the services sector of the economy from the Institute for Supply Management. But a late-session run up in biotechs and consumer issues helped the Dow turn positive. The Dow Jones industrial average gained 0.5% (+44.1 pts, close 8,324.9). The Nasdaq lost 0.5% (-9.1 pts, close 1,787.4) and the S&P 500 index gained 0.3% (+2.3 pts, close 898.7). In currency trading, the dollar gained versus the euro and the yen. U.S. light crude oil for August delivery fell US$2.68 to settle at US$64.05 a barrel on the New York Mercantile Exchange. (CNNmoney)


U.S. service industries from retailers to homebuilders shrank last month at the slowest pace in nine months, as measures of new orders and employment increased. The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90% of the economy, rose more than forecast to 47 from 44 in May, according to data from the Tempe, Arizona-based group. Readings less than 50 signal contraction. The index’s third straight monthly improvement reflects signs of stabilization in housing and consumer spending and increased demand from overseas as a gauge of export orders rose to the highest level since February 2008. Still, mounting job losses and stagnant wages are likely to restrain some
domestic purchases, limiting the impact of any recovery. The ISM non-manufacturing industries index of employment rose to 43.4 from 39 the prior month, and its gauge of new orders increased to 48.6 from 44.4. (Bloomberg)