Dow Jones Sees Profit-Taking after 300 Point Surge
After yesterday’s bumper open to 2013, trading has started more sedately today and the FTSE has given away 5 points to 6022.
Cost-cutting by UK retailing behemoth Next, along with a continuation of its steady 2012 performance over the Christmas trading period, has given it the top spot today.
The retailer now expects to bank profits towards the top of its estimations, around the Â£615m mark for the full year, which has boosted the Next share price by 2.2%.
The UK’s two-tier retail sector is in evidence again, especially following results from John Lewis yesterday.
It seems that those firms with economies of scale, mainly in floor space and in online service, will continue to succeed while many smaller names struggle.
We saw some very big moves in yesterday’s US session. The Dow Jones scored a triple hundred, while the VIX recorded its biggest two-day drop in history.
The ‘we’re going over the cliff’ trade was quickly unwound.
The economy itself comes into stark focus as we get multiple data releases ahead of Non-Farms tomorrow, including the ADP private figure a day later than normal.
Following this we will sift through the final FOMC minutes of 2012, as the various Chairmen share their thoughts on the political stalemate of December.
Our opening call for the Dow Jones is currently lower by 32 at 13,380, with profit-taking and new shorts seen since the close yesterday.
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