Following the pullback seen in the previous session, stocks showed a lack of direction in the course of Wednesday’s trading day. The main average spent days bouncing back and forth across the unchanged line.
In the end, the major averages ended the day with little change. The Nasdaq fell 32.70 points (0.2%) to 14,644.95, while the Dow rose 44.44 points (0.1%) to 34,933.23 and the S & P500 rose 5.09 points (0.1%) to 4,374.30.
Shares began to rise early in the session as Federal Reserve Chairman Jerome Powell responded positively to statements prepared by the House Financial Services Commission.
Powell reiterates the belief that “substantial further progress” towards the Fed’s goals for maximum employment and price stability is “still on the road,” and it is unlikely that the central bank will begin tightening monetary policy immediately. Suggests.
The Federal Reserve Board also reiterated that the Federal Reserve Board will provide “advance notice” before announcing changes to its asset purchase program.
Powell acknowledged that inflation has risen significantly and is likely to continue rising in the coming months, but inflation will ease as the effects of production bottlenecks are mitigated. Is predicted.
However, the sentiment from Powell was almost the same as the Fed’s recent assessment, and the buying motivation diminished shortly after the deal opened.
Powell’s comment on inflation came when the Ministry of Labor released a report in June showing that producer prices were much higher than expected.
According to the Ministry of Labor, the producer price index for final demand rose 0.8% in May and then 1.0% in June. Economists expected producer prices to rise by 0.6%.
The report also saw that annual producer price growth accelerated from 6.6% in May to 7.3% in June, the highest level since the 12-month data was first calculated in November 2010. I showed that I did.
Later that day, the Federal Reserve Board published a beige book outlining case evidence of the economic situation in each of the 12 Federal Reserve Board districts.
Beige Book Mentioned USA Economy It was further strengthened from late May to early July, and the pace of growth is said to be moderate to solid.
Looking to the future, the Beige Book said the demand outlook continued to improve, but many contacts expressed uncertainty or pessimism about the relaxation of supply constraints.
In terms of earnings, Citigroup (C) shares fell slightly during the session, even though financial giants reported higher than expected earnings in the second quarter.
Delta Air Lines (DAL) also turned down, despite reporting lower-than-expected second-quarter losses in earnings that exceeded analysts’ estimates.
Meanwhile, Bank of America (BAC) stocks were under pressure after financial giants reported higher-than-expected but weaker-than-expected second-quarter earnings.
Energy stocks fell sharply as oil prices plummeted, but most of the major sectors ended the day with modest movements.
Crude oil delivered in August plummeted from $ 2.12 a barrel to $ 73.13 after Reuters reported that Saudi Arabia and the United Arab Emirates had reached a compromise on OPEC + policy.
Reflecting the weakness of the energy sector, the Philadelphia Oil Services Index plunged 3.7%, the NYSE Arca Oil Index fell 3.3%, and the NYSE Arca Natural Gas Index fell 2.5%.
Biotechnology and securities stocks also showed noticeable weaknesses on the day, but tobacco and gold stocks showed some strength.
In foreign trade, stocks market During trading on Wednesday, it fell almost across the Asia Pacific region. Japan’s Nikkei 225 Index fell 0.4%, while China’s Shanghai Composite Index fell 1.1%.
On the other hand, European stocks showed a gradual downtrend on the day. The UK’s FTSE 100 index fell 0.5%, while the German DAX index and the French CAC 40 index both closed just below the unchanged line.
In the bond market, government bonds rebounded after pressure in the previous session. Since then, yields on benchmark 10-year bonds, which move against prices, have fallen 5.9 basis points to 1.356%.
Thursday’s trading may be affected by a reaction to the latest set of economic news, including weekly unemployed billing, local manufacturing activity and reports on industrial production.
Powell will also testify in front of the Senate Banking Commission, where he is likely to repeat the prepared remarks.
Morgan Stanley (MS), UnitedHealth (UNH) and Cintas (CTAS) will also report quarterly results before opening Thursday.
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U.S. stocks changed little after a volatile trading session