Traders work on the floor of the New York Stock Exchange on June 29, 2011.
Credit: Reuters/Brendan McDermidBy Ryan VlastelicaNEW YORK | Tue July 5, 2011 3: 14 am EDT
NEW YORK (Reuters) - Stocks were largely flat in a session thinly traded Tuesday as investors digested the gains last week, the best week for equities in two years, while the strength of Netflix has helped lift the Nasdaq.
Shares rallied for five consecutive days pushing the S & P 500 up 5.6%, lift of weakness during the past two months. But the nagging questions about the strength of the economic growth of the U.S. debt limit, the summer might be a rough.
"It is no real surprise that the market now has a more difficult time get excited, in view of the big week us was just," said Hayes Miller, Chief based in Boston, distribution of assets in North America to Baring Asset Management, which oversees about $ 50.6 billion.
Day volume was light, a trend which saw also immutable. The anemic action could exacerbate fluctuations in stocks in non-agricultural week in holiday-shortened, especially with payroll report Friday that on the horizon. Payroll data are intended to show the tepid job creation in June. Markets were closed Monday for the Daholiday of American independence.
"The markets are in a very volatile state right now," which makes a market difficult to make much progress, Miller said. "We will go back and forth with strong weeks as lower last week as we had before that."
The Dow Jones industrial average.DJI was 13.96 points or 0.11%, to 12,568.81. Standard & Poor 500 Index.SPX decreased 1.90 points, or 0.14%, to 1,337.77. The Nasdaq.IXIC Composite index increased increased 7.20 points or 0.26%, to 2,823.23.
Last week, is moving to avoid a crisis of debt in Europe and surprisingly given strong regional business helped lift some of the sadness on Wall Street.
The Nasdaq has been thrown by Netflix Inc (NFLX).(O), which rose by 7.7% to $288.52 after he said that it was expanding its video service online to 43 countries in Latin America and the Caribbean.
New orders received by the plants of U.S. bounced back in may, boosted by demand for transportation equipment, showed a Government report. The increase of 0.8 per cent was slightly below economists predictions.
Stocks were little affected by the data after the move of the last week and some traders may be Paris that the S & P rally is near end.
Important August put the spread has been reached in the S & P 500 Index.SPX Tuesday and was followed by the purchase of a heavy August 120 $-$ 127 put the spread on the American S & P 500 (spy.) Trust(P), said Frederic Ruffy, WhatsTrading.com options strategist.
Morgan Stanley, Adam Parker, U.S. Equity Strategist said lower growth concerns and inflation are set to lead the S & P 500 price-earnings ratio to 10 in five years, as anxious investors keep a lid on actions.
In the recent liquidation, P/E ratio, or that investors are willing to pay a dollar of earnings, fell to 12.7 to 13.5, according to Morgan Stanley. The note was dated July 4.
Crude oil future U.S. sweeps 2.4 97.23% $ per barrel after Barclays Capital raised its forecasts for the goods in 2012, index S & P of lifting power.PSE 0.7 per cent. Marathon Oil (MRO).(N) has increased from 3.5% to $34.15.
In the news of the company, Southern Union Co (SUG.)(N) advanced 2.6 41.40% $ after the operator of pipeline energy transfer Equity LP (been.)(N) has raised its bid to buy its rival by 21% to approximately $ 5 billion, outbidding 4.9 billion dollars bid offer Williams Companies Inc (WMB)(N).
Immucor Inc. (BLUD.)(O) sudden 30.3% to $27 after the diagnostics firm said it has agreed to be acquired by private equity group TPG Capital for an equity value diluted $ 1.97 billion.
(Reports by Ryan Vlastelica;) (Editing by Jan Paschal)
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