Monday, 7 January 2013

FKLI Related News (Tues, Jan 8)

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits. Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index (.BKX), a gauge of U.S. bank stocks, was down 0.3 percent. Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index (.GSPE) fell 0.8 percent and the utilities sector (.GSPU) was off 1.1 percent.

The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year. Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.

 The Dow Jones industrial average (^DJI) dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index (^GSPC) fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index (^IXIC) lost 2.84 points, or 0.09 percent, to 3,098.81. Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session. Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.

FKLI spot month opened slightly higher this morning at 1,686,  after closing sharply lower yesterday from a new high of 1,705 down to 1,684. Today’s Support and Resistance for January contract is located around 1,680 and 1,695 respectively.

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