• The main US stock indexes completed the session in negative territory

Market news

6 July 2017

The main US stock indexes completed the session in negative territory

The main US stock indexes finished trading in negative territory against the background of sell-offs across the entire spectrum of the market under the pressure of growth in yields on government bonds. Most of all lost in the value of shares of healthcare companies and the segment of industrial goods. In addition, concern with investors caused the escalation of tension on the Korean peninsula.

At the same time, weaker than expected data on employment in the private sector of the United States and initial applications for unemployment benefits had a negative impact on the expectations of market participants regarding the US employment statistics published tomorrow.

Data from Automatic Data Processing (ADP), showed that the growth rate of employment in the private sector of the US slowed in June stronger than expected. According to the report, in June the number of employed increased by 158 thousand people compared with the revised downward indicator for May at 230 thousand (originally reported growth of 253 thousand). Analysts had expected the number of employees to increase by 185 thousand.

At the same time, the data of the Ministry of Labor showed that the number of Americans applying for unemployment benefits unexpectedly increased for the third week in a row, probably because some automakers closed assembly plants for annual conversion in the summer. According to the report, the primary applications for unemployment benefits increased by 4000 to 248,000, taking into account seasonal fluctuations for the week of July 1. Data for the previous week was not revised. Economists predicted that initial applications for unemployment benefits will drop to 243,000 over the past week.

In addition, the US service activity index, calculated by the Institute for Supply Management (ISM), rose to a level of 57.4 points in June from 56.9 in May. According to the forecast, the figure should drop to 56.5 points.

Most components of the DOW index are in the negative (27 out of 30). Outsider were shares of General Electric Company (GE, -4.10%). The leader of growth was the shares of E. I. du Pont de Nemours and Company (DD, + 0.46%).

All S & P sectors recorded a decline. The health sector fell most (-1.4%).

At closing:

DJIA -0.74% 21.320.04 -158.13

Nasdaq -1.00% 6,089.46 -61.40

S & P -0.94% 2,409.75 -22.79

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.