Impending conflict in Syria deepened the decline of US stock markets

US InvestorsThe major US indexes posted sharp declines for the second straight session, while Dow Jones fell to a two-month low amid rising concerns about possible US military action against Syria. The US Secretary of Defense Chuck Hagel told the BBC, that the US military is “ready to move” if the US President Barack Obama ordered the action in response to attacks with chemical weapons in Syria. Meanwhile, NBC News reported that the United States could take a rocket attack on Syria “to Thursday”. Dow Jones declined by 1.14% to 14 776.13 points, led by Bank of America, whose shares lost 2.6% of its value to 14.11 dollars per share, and Microsoft, whose market capitalization has shrunk by 2.6% to 33.26 USD.
Standard & Poor’s 500 lost 1.59% to 1 630.48 points, with all its key subsectors ended in negative territory, led by technology and financial companies. Nasdaq Composite slid 2.16 percent to 3 578.52 points and a Standard & Poor’s recorded its weakest session than 2 months. Art Cachin, director of operations of a regulated market in UBS Financial Services, said he is worried about the situation in Syria, describing it as “another big variable”. “I know people who reject this as an excuse for the market that is heading down, but I think if you look at things like the spread between Brent and varieties of West Texas, which begins to expand, you will find that there is a real concern”, he added.
The price of US light crude oil exceeded 109 dollars per barrel, registering its biggest one-day gain for the year because of fears that any military action in the Middle East will disrupt supplies of raw materials from the region. The house prices in USA in June were up 0.9% on a monthly basis and after seasonal adjustment, according to the composite index and the S&P Case Shiller. Without seasonal adjustment growth reached 2.2%. On an annual basis prices rose by 12.1%, the expectations of analysts. However, growth slowed slightly to 12.2% reported in May.
The consumer confidence has risen again to 81.5 points in August from 81.0 points last month, according to the Conference Board. Predictions of experts for a decline to 79.1 points were refuted.
The shares of JCPenney fell by 1.35% to 13.17 dollars after the hedge fund Pershing Square Bill Akman sell its entire stake of 18% in the chain stores, or approximately 39 million shares. Akman left the board of directors of the company 2 weeks ago after a disagreement with the rest of its members in terms of strategy. The market capitalization of the BlackBerry shrank by 3.8% to 10.54 Canadian dollars per share on the Toronto Stock Exchange, after Dow Jones Newswires reported, citing sources familiar with the problem that the company is considering the release of ‘communication unit to unit BBM.
Tiffany’s shares lost 1% of its value to 80.82 dollars, although the company raised its forecast for annual profit after strong sales in China and higher prices have helped to offset weak business in USA.

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