The Dow Jones Industrial index has been seeing a very good and fast recovery during the past week. The recovering was spiked by good news which largely attributed by the drop in crude price.
Stocks poised to pare the big gains resulted from the very broad recovery after the 2Q reports from major companies like American Express Co, Apple Inc and Texas Instruments Inc. Many largely believes that the results not only indicating that corporate balance sheets struggling, but so are consumers. Apple Inc although being expected to perform strongly has issued a weak guidance for the current quarter.
Due to this relatively negative news which dampend the sentiments of investors will see a considerable drop in the market, not only in US but all over the world.
It is believed that Investors during the start of the trading will vastly profit-take and paper losers will tend to cut loss which will see a sharp drop.
However, it is extremely difficult to tell the closing of Dow Jones Industrial Index because it can be very unpredictable. But the market could end mixed as there are also investors buying in on bargain hunting.
All stated are personal opinions and absolutely not an inducement to trade.