The Thursday session at Wall Street began with increases, but in the second part of the day the seller came to the fore, and in effect ended in declines of most main indexes. The market is analyzing macro, duties and their impact on the future results of American companies.
Dow Jones Industrial at the closure fell by 0.51 percent and amounted to 43,968.64 points S&P 500 at the end of the day fell by 0.08 percent and amounted to 6,340.00 points Nasdaq Composite increased by 0.35 percent Up to 21,242.70 points The index of companies with medium capitalization Russell 2000 drops by 0.36 percent. Up to 2,213.28 points The VIX index drops by 1.25 percent, to 16.56 points
Caterpillar's shares fell following the warning of the manufacturer of construction and engineering equipment against the negative influence of duties on its activities. Salesforce also contributed to the decrease in the Dow Jones index, because the software sector was particularly weak in afternoon trade.
Eli Lilly was a session maruder, falling by about 13 percent. After the results of clinical trials of her obesity in the final phase disappointed investors. It happened despite the fact that the pharmaceutical giant published the results for the second quarter, which exceeded the expectations of Wall Street and improved the forecasts for the whole year.
After President Donald Trump announced on Wednesday evening that he would impose 100 percent. The customs duty for imported semiconductor integrated circuits are still growing actions from the semiconductor industry, such as Advanced Micro Devices, which gained over 5 percent.
Apple shares gained 3 percent After the iPhone manufacturer has announced plans to spend an additional $ 100 billion on companies and suppliers in the USA over the next four years. This is an addition to $ 500 billion announced by Apple in February.
– We will impose a very high duty on chips and semiconductors, “said Trump on Wednesday in an oval office. – But good news for companies such as Apple is that if you are building in the United States or committed yourself to build, unconditionally, you obliged yourself to build in the United States, there will be no fees – he added.
Intel shares have fallen by more than 3 percent. After President Donald Trump called the General Director of the Lip-BU Tana company to resign.
The President of the FED from San Francisco Mary Daly said that central bankers will probably have to adapt interest rates in the coming months to prevent further weakening on the US labor market.
“Action markets are still growing, because representatives of the federal reserve present the pigeons more, and global economic activity is resistant,” said Elias Haddad, a senior strategist for markets at Brown Brothers Harriman.
The market ignored the “mutual” duties of the Trump administration, which entered into force on Thursday. What's more, the last economic data, including weekly data on the number of applications for unemployment benefit, suggested that the US economy may still be in good condition. This happened after the market was overgrown with July, lower than expected of employment.
Trump announced on Thursday evening that he chose Stephen Mirana, the Chairman of the Council of Economic Advisors, as a member of the Council of Federal Reserve Governors. Miran will replace Adriana Kugler after her resignation on Friday.
– At the moment there is a lot to think about duties and trade, and usually when large complications are observed in macroeconomic environment, which do not directly affect the economy or profits, the market puts it aside, “said Anthony Saglimbene, the main market strategist at America. – The market focuses on what it can now discount, i.e. on a still stable economic background and high profits – he added.
According to Factet, the profits of companies from the S&P 500 index are currently on their way to an increase of 11 percent. In the second quarter compared to the same period a year ago. It's almost three times more than 4 percent. recorded at the end of June, according to Goldman Sachs.
“The market will look at this and look for evidence of the impact of tariffs,” Anthony Saglimbene continued, adding that he expected that the impact of Trump's tariffs will begin to be visible in economic data in autumn.
On the oil market, contracts for WTI in August reduce by 0.95 percent. up to USD 63.74 per barrel, and September Futures on Brent Futures fall by 0.85 percent. up to 66.30 USD/B. (PAP Biznes)
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