The US markets closed mostly lower on Tuesday, with the Dow Jones Industrial Average after swinging between gains and losses, managing an end of modest gains. Markets have been hobbled by combination of worries about oil and concerns about global growth, especially in Europe. On the economy front, the nation’s trade deficit jumped 7.6% in September to the highest level since the late spring as exports to Europe, China and Japan all fell, a sign that slower growth in the economies of key trading partners is starting to pinch the United States. The surprising spike in the trade deficit is likely to reduce third-quarter growth when the government revises the report later this month. In September, the trade gap climbed to a seasonally adjusted $43 billion from a slightly revised $40 billion in August. Orders for goods produced in US factories fell 0.6% in September. Orders for durable goods -- products meant to last at least three years - fell 1.1% in September, compared with a prior estimate of a 1.3% decline. Orders for nondurable goods were just about unchanged.
Meanwhile, St. Louis Federal Reserve Bank President James Bullard stated that that he is upbeat about the economy and doesn’t think any new central bank stimulus is needed to help keep the US on track for 3% growth. He added that the Fed’s decision last week to end its bond-buying program was probably the right judgment for that meeting. Bullard enlightened that falling inflation expectations might argue for the Fed to continue its bond-buying effort for a bit longer.
Nasdaq was down by 15.27 points or 0.33 percent to 4,623.64, S&P 500 ended lower by 5.71 points or 0.28 percent to 2,012.10, while Dow Jones Industrial Average added 17.60 points or 0.10 percent to 17,383.84.
The Indian ADRs closed mostly in green on Tuesday; ICICI Bank was up 0.97%, Tata Motors was up by 0.32%, HDFC Bank was up by 0.13% and Dr. Reddy’s Lab was up 0.07%. On the other hand, Wipro was down 0.04%.