Tuesday, August 18, 2009


The U.S. market followed world equities markets lower MondayAsian markets reacted to Friday's weak U.S. consumer sentiment data, and the Chinese market, already down sharply last week, dipped 5.8 percent Monday.The Dow finished Monday off 186, or 2 percent at 9135. The combined 262 points lost since Friday gave the Dow its worst two-day performance since June 16. The S&P 500 erased 24, or 2.4 percent to 979. Stocks have now given up all of their August gains and are trading at levels last seen July 29. Traders point to 950 as a key area for the S&P, which could serve as a floor for the market, at least temporarily. They also say the volume is light because there is a real lack of players on Wall Street, due to summer vacations.For Tuesday, traders expect Wall Street to take its directional cue from overseas markets. There are producer prices inflation data and housing starts at 8:30 a.m. Several retailers report earnings, representing a diverse cross section of the retail landscape. Ahead of the bell, there's home improvement giant Home Depot, discounter Target. Computer maker Hewlett Packard reports after the bell.

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