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US markets drop on weak data and ahead of Fed meeting,

30 Jul 2013 Evaluate

The US markets, starting the week on a down note ended lower on Monday, as home sales fell in the wake of higher mortgage rates and investors nervously awaited more data later in the week and a meeting of Federal Reserve policy makers. Investors are closely watching the Fed for any further clues, as to when it may begin tapering its purchases of government bonds. Concerns over a slower pace of stimulus was tied to a pullback by stocks last month, though equities soon recovered to see the S&P and Dow head back to record territory. There is also a ton of economic data on tap this week, with a report on second-quarter US gross domestic product and the government’s monthly jobs report. On the economic front, sales contracts on homes fell in June, backing away from six-year peaks after a recent rise in mortgage rates. Pending home sales fell 0.4%, though they are up 10.9% from June 2012 levels, the National Association of Realtors stated. The NAR forecasts existing home sales of 5.05 million and 968,000 housing starts this year.

The Dow Jones Industrial Average lost 36.86 points or 0.24 percent to 15,522.00, the S&P 500 dropped 6.32 points or 0.37 percent to 1,685.33, while the Nasdaq edged lower by 14.02 points or 0.39 percent to 3,599.14.

Indian ADRs ended mostly in red on Monday, Dr. Reddy’s Laboratories was down by 1.35%, Sterlite Industries was down 0.27% and HDFC Bank was down 0.22%. On the other hand, Wipro added 0.14% and Tata Motors ended higher by 0.10%.

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