Monday the US stock indices declined as the investors were concerned that the aid package to Ireland in amount of $112.61 would not be enough to contain the Euro-zone debt crisis. At the end of trading the Dow Jones Industrial Average decreased by 39.51 points, or by 0.36%, to 11052.49 points. The Nasdaq Composite fell by 9.34 points, or by 0.37%, to 2525.22 points, and the Standard & Poor’s 500 plunged by 1.64 points, or by 0.14%, to 1187.76 points. Hewlett-Packard shares fell in price by 1.4% after Gartner Inc. cut its forecast for world-wide personal computer shipments for 2010. International Business Machines stocks edged lower by 0.7%.
Amazon.com shares rose by 1.3% and reached the record high during the session; the analysts expect that the company will increase its market share in the current holiday shopping season. This optimism appeared came on hopes for “Cyber Monday” after good result of “Black Friday” that may result in more favorable holiday season then last year. Nevertheless, the majority of other retailers stocks fell in price. Nordstorm shares shed by 2.4%, Best Buy dropped by 3%, and Macy’s lost 2.2%. The strongest decrease was marked in the consumer-discretionary and technology sectors; however the financial, energy and materials sectors ended the day in the positive territory after a rebound at the end of the day. This recovery happened after the Dow had been declining by more than 160 points earlier in the session, since the investors started realizing that these levels are of interest. Being at Monday lows, the stocks were trading at levels that have not been observed since October, until midterm elections and the Federal Reserve System statement about the measures in amount of $600 dollars. Investors were still worried about the Euro-zone debt situation even after on Sunday Europe reached the agreement to pay Ireland a 67.5 billion Euros aid package. Taking into account Ireland’s own contributions, the sources of which are state’s treasury and pension-reserve fund, the bailout package is 85 billion Euros. There are also worries that Portugal and Spain will also need the help to refinance their debts. This anxiety promoted the falling of the euro, whereas the cost of insuring the Spain and Portugal’s debt against the default was increasing. The European Commission said that the weakness of global markets and government efforts to decrease the deficit would lead to “gradual and arther unsteady” economic recovery in 27 Euro-zone countries.
