US stocks are almost down, but Nasdaq Bucks is on a downtrend

Stock prices fell most of the time during Wednesday’s trading, but technology-intensive Nasdaq went against the downtrend. The Dow slipped firmly into the negative territory and the S & P 500 dropped Tuesday’s record high.

The Dow fell 323.73 points (0.9%) to 34,792.67 and the S & P 500 fell 20.49 points (0.5%) to 4,402.66. Meanwhile, Nasdaq spent most of the day near the unchanged line before closing at 14,780.53 with 19.24 points (0.1%).

Wall Street’s weakness partially raises new concerns about the pace of US economic growth after salary processor ADP released a report in July showing a much lower than expected increase in private sector employment. It reflects.

ADP said private sector employment surged in June with a downwardly revised 680,000 employment, followed by an increase in 330,000 employment in July.

Economists expected private-sector employment to surge by 695,000, compared to the 692,000 surge that was first reported last month.

On Friday, the Ministry of Labor will release a more closely monitored monthly employment report, including both public and private sector jobs.

Economists now expect reports to show a surge in 880,000 jobs in July after a surge in 850,000 jobs in June. The unemployment rate is expected to drop from 5.9% to 5.7%.

The plunge in General Motors’ (GM) stock price also weighed on Wall Street, with auto giants declining 8.9% to a five-month low.

The decline from GM is due to the company’s report that second-quarter earnings were lower than analysts expected, although automakers raised guidance for the full year.

Negative sentiment was partially offset by a report from the Supply Management Association showing that growth in US services sector activity accelerated much more than expected in July.

According to ISM, the service’s PMI returned to 60.1 in June and then jumped to a record high of 64.1 in July, with numbers above 50 indicating sector growth. Economists expected the index to rise to 60.4 inches.

Sector news

On that day, oil services stocks fell sharply and the Philadelphia Oil Services Index rose 6.4%. The index closed the session with the lowest closing price in more than 3 months.

Following the release of a report showing an unexpected weekly increase in crude oil inventories, oil service stocks have come to sell as crude oil prices for delivery in September plummeted from $ 2.41 to $ 68.15 per barrel. rice field.

Falling crude oil prices also weighed on oil producer stocks, with the NYSE Arcaoil Index falling 3.6%.

As reflected in the 2.4% decline by the NYSE Arca Airline Index, airline stock prices also fell sharply on that day.

Housing, tobacco and telecommunications stocks have also been on a downward trend, and the strength of biotechnology and semiconductor stocks has contributed to the rise in the Nasdaq.

Other markets

In overseas transactions, stocks market Japan’s Nikkei Stock Average has receded its uptrend, falling 0.2%, but the Asia-Pacific region as a whole has risen almost on Wednesday. Both China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index rose 0.9%.

On that day, major European markets also started to rise. Germany’s DAX index rose 0.9%, while France’s CAC 40 index and the UK’s FTSE 100 index both rose 0.3%.

In the bond market, the session ended almost flat after government bonds showed volatile fluctuations in the morning trading. Since then, yields on benchmark 10-year bonds, which move in the opposite direction of price, have risen below basis points to 1.184%.

Future outlook

Trade activity may be somewhat curtailed prior to the monthly employment report, which is being watched closely on Friday, but the first unemployment claim and the US trade deficit report could get some attention on Thursday. Is high.

Meanwhile, Allstate (ALL), Electronic Arts (EA), Etsy (ETSY) Hostess Brands (TWNK) Metlife (MET), Uber (UBER) and Western Digital (WDC) have announced quarterly financial results after today’s financial results. It’s a company. transaction.

Cardinal Health (CAH), Cigna (CI), Hanesbrands (HBI), Papa John’s (PZZA) and ViacomCBS (VIAC) will also report their results before the opening of trading on Thursday.

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US stocks are almost down, but Nasdaq Bucks is on a downtrend

Source link US stocks are almost down, but Nasdaq Bucks is on a downtrend

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