Stocks in New York Weaken as Politics Takes Center Stage, Gold, Silver Up

Bikram Pandey
08 Apr, 2011
New York City

U.S. stocks wavered after a rally of four days and government shutdown looms midnight. Lawmakers are divided over 2011 budgetary cuts. Gold and silver trade at 31-year new high and European markets rebound after Portugal sought European Union help.

[R]11:00 AM New York – U.S. stocks wavered after a rally of four days and government shutdown looms midnight. Lawmakers are divided over 2011 budgetary cuts. Gold and silver trade at 31-year new high and European markets rebound after Portugal sought European Union help.[/R]

Stocks in New York traded sideways in the early hours after Federal lawmakers and President Barrack Obama remain divided on budget cuts.

Government offices in D.C. are likely to shut at midnight today that will disrupt the operations of several agencies including defense, housing and IRS.

Investors are for now ignoring the budget impasse and estimating little impact on the U.S. economy. However, markets expected close weak today if

Crude oil traded above $111 a barrel and gold June futures gained 0.8% to 1,471 an ounce and silver increased 70 cents or 1.8% to $40.52 an ounce.

Gold and silver has jumped more than 15% in the last two months as tensions in the Middle East rise and Japan suffered triple disasters.

Stock Movers

Of 30 the stocks in the Dow, 16 increased and 12 decreased and 2 unchanged.

Of the stocks in the Dow Jones Industrial Average, Intel Corporation led the gainers with a rise of 0.81% followed by increase in Chevron Corporation of 0.77%, in Merck & Co., Inc. of 0.77%, in Caterpillar Inc. of 0.49%, in Johnson & Johnson of 0.49%.

Cisco Systems, Inc. led the decliners with a fall of 0.91%, followed by decline in JPMorgan Chase & Co. of 0.53%, in Wal-Mart Stores, Inc. of 0.53%, in Microsoft Corporation of 0.46%, in Bank of America Corporation of 39%.

Expedia, Inc. ((EXPE)) soared 10.7% or $2.40 to $24.80 after the package base online travel company today announced Board of Directors has approved plan to separate into two publicly traded companies. The proposed spin off expected to complete in third quarter 2011.

Seagate Technology plc ((STX)) soared 9.7% or $1.44 to $16.12 after the Ireland based hard disk drive maker said the board has approved quarterly cash dividend of $0.18 per share. The first dividend will be payable on June 1.