Wednesday, 31 August, the stock market of the United States in the first half of the trading session shows a moderately negative dynamics amid a retreat in oil prices and mixed macroeconomic statistics.
According to the data released today, the Chicago business activity index in August decreased significantly more than expected, from 55.8 points to 51.5 points. In addition, oil reserves according to the EIA last week increased to 2,276 million barrels, while expected less considerable growth, and this news caused the drop in the prices of “black gold”. Accordingly, in less gone and quotes of the concerned sector in the stock market.
On the other hand, the indicator of employment ADP in August showed 177 thousand new jobs in the private sector, i.e. approximately on a par with the average market expectations.
It is worth noting that we have heard today comments of head FRB Boston’s Rosengren and Chicago fed chief Evans on the topic of monetary policy, with the first expressed “hawkish” tone, and the second in “pigeon”.
External background for the U.S. session is not the most favorable – Asian markets were mixed and European down.
19:23 Moscow time the index broad-market Standard & Poor’s 500 is trading lower by 0.64% at around 2162,22 paragraph, the indicator of blue chips Dow Jones Industrial Average loses of 0.64% to a level of 18336,03 of points and the index high-tech industries Nasdaq Composite is trading on the downside of 0.56% at around 5193,71 points.
The dollar index gaining 0.04 percent; gold futures traded in the red by 0.22% and silver is lower by 0.57%; industrial metals exhibit mixed dynamics, Brent crude is trading lower by 3.2%.
In the composition of the blue-chip index traded in the red for more than two thirds of the papers, including more than 1% losing Chevron and Nike. In a slight plus are Apple, Merck, Verizon etc.
The company sphere of cybersecurity Palo Alto Networks have fallen by 8.8% after it released disappointing forecasts for the current quarter.
Drone manufacturer AeroVironment fell 18.1% reported major drop in revenue in the last quarter.
The consulting firm H&R Block has lost 10.8 percent of the market capitalization of the unfavorable quarterly report published a day earlier.