Business

US stocks fell slightly after seeing initial strength

Stock prices almost fell during the trading process on Friday morning after turning up early in the session. All major averages have been pulled back from the session highs to the negative territory.

Currently, the major averages are recording medium losses on the day. The Dow is down 99.73 points or 0.3 percent at 34,887.29, the Nasdaq is down 9.68 points or 0.1 percent at 14,533.45, and the S & P 500 is down 7.20 points or 0.2 percent at 4,352.83.

Wall Street’s initial strength partially reflected a positive reaction to a report from the Commerce Department showing an unexpected increase in retail sales in June.

The Commerce Department said retail sales rose 0.6% in June after a 1.7% plunge revised in May.

The rebound was surprised by economists who expected retail sales to fall 0.4% compared to the 1.3% drop initially reported last month.

Excluding the plunge in sales by auto and parts dealers, retail sales rose 1.3% in June, following a revised 0.9% decline in May.

Economists expected non-automobile sales to increase 0.4% compared to the 0.7% decrease initially reported last month.

However, another report from the University of Michigan showed that an unexpected downturn in consumer sentiment was creating some negative emotions, and buying motivation diminished in the morning.

The report showed that the consumer sentiment index plummeted from 85.5 in June to 80.8 in July. This decline surprised economists who expected the index to rise to 86.5 inches.

“Inflation is putting more pressure on living standards, not job creation, but stopping and reversing accelerating inflation,” said Richard Curtin, chief economist at consumer research. He said it caused a large postponement of discretionary purchases.

Oil service stocks have recently expanded their sales as crude oil prices continue to fall. The Philadelphia Oil Services Index fell 2.7% to a two-month intraday low, with crude oil delivered in August falling from $ 0.83 a barrel to $ 70.82.

Steel stocks also show significant weakness, as reflected in the 2.2% decline by the NYSE Arca Steel Index.

Gold stocks also showed a marked downtrend on the day, dropping the NYSE Arca Gold Bug Index by 2%.

Weak gold inventories arose as precious metal prices fell, with gold delivered in August falling from $ 15.30 to $ 1,813.70 per ounce.

Oil producers, biotechnology and banking stocks also showed noticeable weaknesses that day, with interest rate-sensitive utilities and commercial real estate stocks on the rise.

In foreign trade, stocks market During the trading on Friday, various performances were seen throughout the Asia Pacific region. Japan’s Nikkei 225 Index fell 1%, while Australia’s S & P / ASX 200 Index rose 0.2%.

Meanwhile, all major European markets have moved down that day. France’s CAC 40 index fell 1.1%, Germany’s DAX index fell 0.9%, and the UK’s FTSE 100 index fell 0.4%.

In the bond market, government bonds have shown a modest weakness after a significant rise in the previous two sessions. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, increased by 1.8 basis points to 1.315%.

Contact for comments and feedback: editorial@rttnews.com

Business news



US stocks fell slightly after seeing initial strength

Source link US stocks fell slightly after seeing initial strength

Back to top button