After a heady two-week sprint that saw the Dow Jones Industrial Average jump 12% and return to positive territory for the year, investors got a dose of reality.
Dow Jones Industrial Average lost 247.49 points, or 2.1%, to 11,397.00, the biggest drop in 2 weeks. The decline, as quoted by Wall Street Journal, put the index back in the red for the year and was a reminder to some that many of the troubles that plagued the market over the summer have yet to be resolved.
Three of the engines behind the recent advance—a strengthening U.S. economy, robust company earnings and signs of progress on the European debt crisis—showed signs of petering out.
A key reading of U.S. manufacturing activity fell short of estimates Monday, prompting some economists to rethink their bullish growth assumptions for the third quarter of the year. How about Indonesia market today? Here are stock recommendations provided by Bisnis Indonesia:
Jakarta Composite Index (JCI) may test a long term's resistance at 3,751 and support level at 3,700. Several stocks to watch: BBNI, BJBR, PTPP, DILD, and BKSL. The index has entered oversold area.
Minna Padi Investama:
The JCI may move within the range of 3,718-3,837. Blue chips have already overbought. Several stocks to monitor: KIJA, BKSL, and ASRI.
The index technically tends to be mixed within the range of 3,647-3,768. Several stocks may suffer profit taking. Monitor some stocks such as BWPT, GZCO, INTA, and INDY.
Today, the JCI may move in a limited gain to test a resistance downtrend. The index may move within the range of 3,675-3,782 with several stocks to watch: ITMG, INCO, and DOID.
Disclosure: No position at the stock mentioned above.