Monday, August 2, 2021
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US stocks fell slightly after seeing initial strength – News

Stocks fell almost during Wednesday’s trading day after a modest rise early in the session. The key average has been significantly reduced from the session highs to the negative territory.

Currently, the major averages are recording moderate losses. The Dow fell 41.67 points or 0.1 percent at 34,847.12, the Nasdaq fell 41.98 points or 0.3 percent at 14,635.67, and the S & P 500 fell 4.64 points or 0.1 percent at 4,364.57.

Wall Street’s early strengths partially reflected the positive reaction to the statements made by Federal Reserve Board Chairman Jerome Powell at 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.

In terms of earnings, Citigroup (C) shares fell 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.

Bank of America (BAC) stocks, meanwhile, are under pressure after financial giants reported higher-than-expected but weaker-than-expected second-quarter earnings.

Sector news

Energy stocks fell sharply during the session, and crude oil prices, which weighed on the sector, plummeted.

Crude oil delivered in August has fallen from $ 1.13 a barrel to $ 74.12 after Reuters reports that Saudi Arabia and the United Arab Emirates have reached a compromise on OPEC + policy.

The Philadelphia Oil Services Index is down 3.3%, the NYSE Arca Oil Index is down 2.6%, and the NYSE Arca Natural Gas Index is down 2.3%, reflecting the weaknesses of the energy sector.

The KBW Banking Index and the NYSE Arca Broker / Dealer Index fell 1.6% and 1.3%, respectively, revealing considerable weakness among financial equities.

Biotechnology stocks are also on a downward trend on the day, and gold stocks are also steadily growing as precious metal prices rise.

Other markets

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 are recovering after pressure in the previous session. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, fell by 5.1 basis points to 1.364%.

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