The US equity markets ended mixed in thin & choppy session amid Greece's ongoing debt woes and ahead of the quadruple witching today as better than estimated housing starts and jobless claims tempered concerns of a economic slowdown.
The Dow Jones Industrial Average gained 64.25 points or 0.54%, to close at 11,961.52 and S&P 500 Index rose 2.22 points or 0.18%, to end at 1,267.64. However, NASDAQ Composite fell 7.76 points or 0.29%, to finish at 2,623.70.
Richard Ross, technical analyst, Auerbach Grayson said, "All of our work continues to suggest that the S&P remains vulnerable to an extension of the decline down to 1150 level, on a sector level, on an intra-market level, on a macro level - all signs point to lower levels in the S&P 500."
On economic data front, there was some better-than-expected news. Housing starts rose more than expected and permits for future construction touched a five month high in May. New applications for jobless benefits fell to 414,000 in the latest week from an upwardly revised 430,000 in the week before.
The US current account deficit increased in the first quarter on strong imports. The deficit represented 3.2% of US gross domestic product.
In economic data to watch out for, the consumer sentiment index for June is expected to deliver a slight rise. Consensus figures depict a rise from 74.3 for May to 74.5.
European markets fell to a three-month low as political instability in Greece added on to the investor worries over the country's acute debt issues. France's CAC fell 0.4% and Britain's FTSE lost 0.76%. Germany's DAX was flat.
Meanwhile the Greek state television says prime minister, George Papandreaou will announce his new cabinet line up today. The PM's plan to form a new government yesterday fell into disarray after two key party members resigned citing disagreements with his economic policy.
There was some reassurances from the EU's top economic official Ollie Rehn. Rehn said that the next tranche of aid about 12 billion euros will be released early next month.
In the currency space, the euro pared its decline against the dollar after reaching a three-week low amid speculation that an agreement between the European Union and the International Monetary Fund may allow Greece to avoid a debt default.
In commodities, oil gains for a second day after reports showed that US housing starts rose more than forecast in May and fewer Americans filed applications for unemployment benefit, signaling fuel demand may increase.
Copper declines for a second straight day, weighed down by economic recovery fears reflected in weak manufacturing growth in the United States and a deteriorating debt situation in Greece.
