Indices still down
The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are still firmly in negative territory. At 2:29 p.m. ET the Russell 2000 was down 16.49 points, or 1.97%, to 819.13, on track for a third consecutive fall. The Dow has shed 121.28 points, or 0.87%, to 13,822.14.
In more earnings news, McDonald’s Corp. (NYSE: MCD) reported a second-quarter net loss due to a large charge associated with the sale of approximately 1,600 Latin American restaurants.
Excluding the charge, earnings came in as expected.
Some good news came in the form of lower oil prices. The price of oil has declined about $1.30 to $73.60 a barrel following news that the Organization of Petroleum Exporting Countries could increase output.
A high level official from Iran’s Oil Ministry commented today that OPEC will raise production if the global oil market demands it. Iran is the cartel’s second biggest producer after Saudia Arabia and has the world’s third largest oil reserves.
Elsewhere, news of the spreading contagion from the slumping housing sector pushed the U.S. dollar to new lows against some major currencies.
The greenback is currently worth only 0.4846 British pounds and 0.7232 euros, the currency adopted by 13 countries in the 27-member European Union.
The weak dollar could help the U.S. economy by making exports cheaper and imports more expensive, thus narrowing the trade deficit.
