| DAX 30 will rise today. |
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Stefan Angelov Head Broker - Stocks Markets |
Tech had attempted to provide the broad market with a positive source of leadership today, but instead the stock market fell to its eighth loss in 10 sessions as participants remained focused on the problems of the eurozone.
Word that first quarter economic growth in Germany exceeded expectations had quelled concerns about the precarious eurozone region and resulted in gains by Europe's major bourses, but sentiment soured when market participants were reminded of the persistent problems in the eurozone periphery. Specifically, headlines indicative of continued political impasse in Greece revived worries about what that could mean for the country's austerity plans. Greece returned to focus later in the day as financial media detailed the outflow of deposits among Greece's banks.
A relatively underwhelming dose of domestic data failed to instill confidence among market participants. Both overall retail sales and retail sales less autos increased during April by 0.1%. Economists polled by Briefing.com had expected both to increase by 0.2%.
There were no surprises to the latest Consumer Price Index. Overall CPI was flat from the prior month, while core CPI increased by 0.2%.
The Empire State Manufacturing Index for May surprised many, however. It improved to 17.1 from 6.6 in the prior month to exceed the 8.4 that many economists had expected.
Stocks struggled to sustain an early bid amid eurozone worries, but an advance by Tech helped lift the Nasdaq to a nice gain and put the S&P 500 in positive territory. However, Tech's strength proved unsustainable in the face of a broad market downturn in afternoon trade. Tech stocks collectively shed 0.5%.
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