Dow has longest losing streak since 2008


Market Snapshot for August 2, 2012 (12:15 am ET):

  • Closing Prices: DOW 11,866.62 (-265.62, -2.19%),S&P 500 1,254.05 (-32.89, -2.56%), NASDAQ 2,669.24 (-75.37, -2.75%), Nikkei 225 9,844.59 (-120.42, -1.21), DAX 6,796.75 (-157.23, -2.26%), FTSE 5,718.39 (-56.04, -0.97%)
  • OIL 93.25, GOLD 1,659.70, SILVER 40.65
  • EURO 1.4174, YEN 77.29, BRITISH POUND 1.6278, U.S. DOLLAR INDEX 74.665

Poor Data Continue to Weigh Heavily on the Market

The week began with a gap up in the index futures Sunday evening following Obama's announcement that an agreement had been reached regarding the long-debated debt ceiling. These gains were quickly eroded from that point forward despite the plan passing in the House late Monday and the Senate on Tuesday. On Tuesday afternoon it was signed by the president. By this point, however, continuing disappointment on the data front was rocking the indices and investors continued to display their worry about the larger economic outlook.

On Monday, the ISM's manufacturing index fell from 55.3 to 50.9 in July, creating sharp intraday selling. Then on Tuesday, according to the Commerce Department, consumer spending decreased in June by 0.2%, although an uptick had been anticipated. Meanwhile, personal income rose 0.1%, which was in line with expectations. The index futures had been inching higher ahead of this data despite a weak open, but the timing of the release corresponded perfectly with Tuesday's intraday highs and the market sold off throughout the remainder of the session.

Dow Jones Industrial Average (Figure 1)

Tuesday's session was so bad that it wiped out the S&P 500's ($SPX) gains year-to-date and marked the eight straight day of losses for the Dow ($DJI). The last time this occurred was nearly 4 years ago. Gold was a key beneficiary of the market's losses. It once again hit new record highs and ended the session up 1.3%. Gold for December delivery was up as much as $1,646.80 an ounce. Meanwhile, the U.S. dollar fell to record lows against the yen and Swiss franc, but were higher against the British pound and euro following concerns on global growth and the euro-zone debt crisis that led European shares to eleven-month lows.

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