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[Kizen]

U.S. stocks fell for the first time in this week after the market slowdown in manufacturing when compared to that of earnings forecasts, which are relatively too high. After a bright opening, shares pulled back when the lacetype w:st="on">Institutelacetype> of lacename w:st="on">Supply Managementlacename> manufacturing index suggested activity was nearly at the edge separating expansion and contraction. Housing and construction activity also slowed which raised the real question about how serious the slowdown is going to be ? More than three stocks fell for every one that rose on the New York Stock Exchange. Some 1.8 billion shares traded on the Big Board, 20 % more than the three-month daily average. In one way or the other US market is effected for some time oil played a major role in market fluctuation and for some time Federal Res played a major role. It look like market is improving no question about that but in an decreasing manner.

The Dow industrials fell 49.71 to 12,031.02. United Technologies Corp., the maker of Pratt & Whitney jet engines, led a decline in the Dow Jones Industrial Average. Industrial shares fall worse-than-expected factory report.
• United Technologies declined $ 1.47 to $ 64.25, the biggest drop in the Dow average.
• Alcoa Inc., the world's biggest aluminum maker, lost 43 cents to $ 28.33, adjusted for a dividend payout.
• General Motors Corp., the world's largest automaker, slid 27 cents to $34.65.

The NASDAQ Composite Index declined 32.36 to 2334.35. The NASDAQ Composite Index had its biggest loss in eight weeks after sales at Garmin Inc., the biggest U.S. maker of portable navigation devices, were below then the analyst’s estimates and its shares dropped.

The Standard & Poor's 500 Index lost 10.13 to 1367.81 Drug retailers slumped on speculation after CVS Corp., the second-largest U.S. chain, agreed to buy Caremark Rx Inc. for $ 21.3 billion. Drug-benefit managers dropped, among drugstore chains, CVS dropped $ 2.32 to $ 29.06 the second biggest slide in the S&P 500 because the Company agreed to buy Caremark to create a combined service that manages drug-benefit plans and sales at pharmacies.

Out Of the 371 companies in the S&P 500 to report results for the third quarter, 73 % have beaten analyst’s earnings estimates, Profit growth at S&P 500 companies will slow to 10.6 % in the fourth quarter, from 17.4 % in the third.

The above mentioned are only one side study of the market some industries also gained which offset the negative trend to some extent. The fourth-largest U.S. health insurance provider Cigna raised $ 1.99 to $ 118.97 they said net income rose 15 % as membership grew in medical plans where some companies buy insurance plans for their employees and their families.

Ford Motor Co., the second-largest U.S. automaker, rose 24 cents to $8.52 after reporting an 8.1 % gain in U.S. sales last month. After a long gap it was yesterday where oil price movement did not played a major effect in the market movement

[patanx]

For all the pundits out there claiming that the U.S. midterm elections next week won't mean anything for the stock market, take a good look at the Canadian stock market plunge Wednesday.

Canada's S&P/TSX Index in Toronto fell 2.4%, its worst showing since early this summer, and some of its companies fell between 11% and 19% in a vicious bout of selling sparked by a government announcement that it will close a tax loophole on income trusts that had led to a surge in big companies converting to trust status to avoid taxes. The income trust sector of the market fell more than 10%.