US stock markets fall in early trading on Tuesday.
The Dow Jones is down 0.47 percent to 17,148.25, the Nasdaq 0.62 percent to 4,720.70, while the broader S & amp; P 500 Index returns 0.57 percent to 2,008.14.
Pharmaceuticals giant stools
Among individual stocks distinguishes the Canadian pharmaceutical giant Valeant Pharmaceuticals noticeably worse.
the stock plunge nearly 40 percent to $ 42.19 after getting a profit warning for Q1.
the estimates were revised down, and expectations of quarterly results is now no higher than $ 1.55 share, compared with prior guidance of 2 , 35 to 2.55 dollar share.
Follow developments on Wall Street here.
– Yellen have to play tough
the development happens in the wake of mixed macroeconomic figures .
Retail trade fell, as did producer prices. Empire Manufacturing index in New York, however, was a great encouragement, and came out in the black for the first time in eight months.
And in writing showing statistics for inventories that these rose 0.1 percent in January, against expected no change.
Investors are now waiting for the Federal Reserve. The Federal Reserve starts today’s monetary policy meeting that culminates in a conclusion tomorrow.
Most expect that Governor Janet Yellen keeps key rate steady, and many economists see according to MarketWatch for only one rate increase to over year (in June). The Fed has previously signaled as much as four rate hikes this year.
– Yellen may play tough to convince the market that another interest rate increase is not possible this year, and the Fed is indeed still rely on macro data coming , writes chief analyst Naeem Aslam Ava Trade in a note.
oil weigh
Meanwhile fall in oil prices to weigh on the energy sector.
ExxonMobil falling 0.2 percent to 82 , $ 26, Chevron 1.8 percent to $ 92.55 and Schlumberger 1.5 percent to $ 72.37.
Brent May oil falling 1.9 percent to $ 38.79, while WTI April oil goes back 2.3 percent to $ 36.32 a barrel.
Chief Analyst for commodities in SEB, Bjarne Schieldrop, wrote in a report yesterday that the two key drivers behind the rally past $ 40 is about to disappear.
Schieldrop showed primarily the Ceyhan pipeline from northern Iraq to Turkey’s Mediterranean coast is repaired, and only waiting for the green light from Baghdad.
– the pipeline will be back in operation at any time, wrote commodity manager, referring to a capacity of 600,000 barrels per day.
Iran putting it dead
Driver number two has been expectations of a meeting and then agreement between Russia and major OPEC countries to freeze oil production. The ball can be said to have been put death of Iran’s statements at the weekend that the country needs up to an export of four million barrels per day before participation in such an agreement should be appropriate.
Meanwhile dropped OPEC yesterday afternoon its March report, and extinguished according to Reuters there hoped that the offer overhang will diminish any time soon.
Although Russia and major OPEC countries should reach an agreement on production freeze, the persistently high production nevertheless make an overhang of more than one million barrels per day.
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