US stocks fell on Tuesday, pulling key indices back from record levels. This is because Chinese regulator crackdowns seemed to weaken the mood for investing in Wall Street ahead of the quarterly earnings of some of the most prominent companies in the tech sector.
Asian trends come as investors wait for an economic report this week, including GDP for the second quarter, and a policy update from the Federal Reserve Board on Wednesday.
How are stock benchmarks traded?
Dow Jones Industrial Average
It fell by 163.16 points (0.5%) to 34,981.15.
S & P 500
It fell by 30.59 points (0.7%) at 4,391.71.
Nasdaq Composite Index, which makes heavy use of high-tech
At 14,588.72, it decreased by 251.99 points, or 1.7%.
on MondayThe major benchmarks ended with record highs in two consecutive sessions. The Dow and S & P 500 rose 0.2% each, and the Nasdaq Composite also rose to set new records. All three indices have risen for the fifth straight day.
What is driving the market?
Shares fell as investors worried about selling in Hong Kong The Hang Seng Index puts pressure on risk assets around the world.Hang Seng Index HK: HSI Asia’s trade fell 4.2%, falling more than 4% for the second year in a row, amid crackdowns on Chinese tech stocks.
Stocks plummeted after China announced rules requiring online food platforms to pay the minimum wage, but sales were widespread and technology giant Tencent
Each is decreasing sharply.
But analysts point out that U.S. stocks are trading near record highs, arguing that more domestic considerations are likely to drive the market, beyond the immediate reaction to China’s developments. did.
In an interview, Bill Nosy, senior investment director at US Bankwealth Management, said next week’s “two major factors” would remain “revenue reports and opinions from the Federal Reserve Board.” I’m against it. ” “Very strong economic recovery background” highlighted by strong consumer confidence in July, read on Tuesday morning.
The Conference Board’s closely tracked Consumer Confidence Index rose from 128.9, revised in June, to 129.1 this month. Hit the best of 16 months..
However, some investors are afraid that selling in Asia may dim the brilliance of the strong US corporate earnings reporting season so far.
Pierre Valet, technical analyst at ActivTrades, said:
Meanwhile, the Federal Reserve Board was planning to launch a two-day policy meeting. Policymakers led by Jerome Powell are expected to have a long debate this week about ultimately delaying monthly bond purchases, but Fed watchers said the meeting was about the start or pace of tapering efforts. He said it was unlikely to produce an answer to the question.
In other US economic data, Orders for durable consumer goods increased June’s 0.8% is well below the 2% rise expected by economists. However, the May order was revised to show a 3.2% increase from the original estimate of 2.3%.
S & P CoreLogic Case Schiller Home Price Index Showed an increase of 16.6% over the previous year In May, it increased from the previous record of 14.8% last month. The individual 20-city index, which measures home prices across groups in major cities across the country, increased 17% in May from 15% last month.
U.S. tech giant after closing Tuesday alphabet Google, Apple AAPL When Microsoft MSFT It was expected to report quarterly results. Analysts say that being in front of tech earnings compared to other major indices on Tuesday could also help explain the poor performance of the high-tech Nasdaq Composite Index. Stated.
Which company is paying attention to?
- Tesla, Inc. TSLA Stock price fell 3.7% After an electric car maker reported a surprisingly strong profit late Monday.
- 3M Co.. Hmm Net earnings for the second quarter on Tuesday were $ 1,524 million ($ 2.59 per share), up from $ 1,306 million ($ 2.25 per share) in the year-ago quarter. Stock prices fell 1.2%.
Share General Electric Co., Ltd.
0.1% down after industrial conglomerate We reported higher-than-expected second-quarter earnings and earnings. Surprisingly, it generated positive free cash flow.
- Corning Inc.
Market share fell 4.1% after optics maker Record higher-than-expected revenue and revenue For that second quarter.
- Centene Corp.
We posted better-than-expected adjusted second-quarter earnings on Tuesday, providing better-than-consensus guidance. Stocks fell by more than 4%.
Share United Parcel Service Co., Ltd. ups Dropped more than 8% after courier giant Reported Second Quarter Profit and Revenue Even if the US domestic business was below the earnings forecast, it was above the forecast.
- JetBlue Airlines Co., Ltd.
On Tuesday, with a narrower second-quarter loss than expected 7x increase in revenue Airline travel has improved further month-on-month, surpassing expectations for the past year. Stock prices have fallen 8%.
What are the other markets doing?
10-Year Government Bond Yield
It fell 3.6 basis points to 1.24%. Yields and debt prices move in opposite directions.
ICE USD Index
Currency readings against the baskets of the six major rivals fell 0.3%.
Oil futures lost ground in US benchmarks
0.8% off gold futures
It was traded almost unchanged.
For European equities, the STOXX 600 Europe Index
London’s FTSE 100 down 0.5%
Steve Goldstein contributed to this report.
Nasdaq plunges as stock indexes recede from record ahead of tech earnings
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