Wall Street zigzags by Magdalena Rosova

Erratic session and modest gain, these are suitable attributes for Tuesday's Wall Street news. It has been made clear that country's economy is in deep problems.Prices in turns rose and fell. Unfortunately uneven course of event was not stunning.The session brought more disappointing news for investors. Oil prices rose again, American manufactures are still under pressure and Ford Motor Co.'s sales crumpled. These events made traders afraid that the economy is not closer to coming better. GM's sales, which fell 18.2 percent during June, got better then analysts expected. This news is in contrast to the previous report by Ford Motor Co., where 27.9 fall in sales sent the company's stock to it' lowest point in decades. Even though reports on manufacturing are pessimistic, it has been reported strong exports for U.S. factories. “This market is craving anything positive,” said Ryan Detrick, technical strategist. Market has sold off so much and traders found GM's weak but better-than-expected sales as a buying opportunity. That gave the a small gain.Oil settled at a cost $140.97 a barrel after rising above $143 per barrel.Although manufacturing unexpectedly increased in June, deeper look shows that prices companies paid for fuel and materials grew as a demand shrank. Taken as whole, the report turned out to be negative.Traders were also upset because of drop caused by slump in housing. Construction spending fell less then it has been forecast.The market is nervous about companies' issuing earnings and outlook coming next week. It is expected to impact the oil price. The continuing climb of crude price is causing even more economic troubles.

related story: http://www.iht.com/articles/2005/07/20/yourmoney/mart.php

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

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posted by Lucia Adamova