• Major US stock indexes finished trading mostly in positive territory

Market news

24 July 2019

Major US stock indexes finished trading mostly in positive territory

Major US stock indices have predominantly increased, as investors analyzed the new block of quarterly reports of US companies, as well as the announcement of the opening by the US Department of Justice of an antitrust investigation in relation to major technology companies.

Over 25% of the S & P 500 companies have already published quarterly figures for the second quarter. According to FactSet, of these companies, 78% showed higher than expected earnings for the last reporting period.

Nevertheless, the mood remains fragile, including because of the announcement by the US Department of Justice that its anti-monopoly committee is investigating how leading online platforms managed to take a dominant position in the market and whether they are engaged in activities aimed at reducing competition and suppressing innovation. and causing other harm to consumers - and in what way. Although the statement does not contain specific references to companies, the criteria noted indicate Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN) and Facebook Inc. (FB).

Investors also analyzed data for the United States. As reported by IHS Markit, the seasonally adjusted business activity index in the US private sector was 51.6 in July compared with 51.5 in June and remained above the three-year low recorded in May. Service companies have recorded the strongest business growth since April. This helped offset the slowdown in the industrial sector in July.

Meanwhile, the Department of Commerce data showed that sales of single-family single-family homes in the United States increased sharply in June, but sales in the previous three months were revised downward, indicating that the housing market continued to face difficulties, despite more low mortgage rates and a strong labor market. According to the report, sales of new homes rose by 7.0%, to a seasonally adjusted annual level of 646,000 units last month. The May sales pace was revised to 604,000 units from the previously announced 626,000 units. Economists had forecast that sales of new homes, which account for about 11% of sales in the housing market, increased to 660,000 units in June.

Most of the components of DOW recorded a decline (17 of 30). Caterpillar Inc. shares turned out to be an outsider. (CAT; -4.35%). The growth leader was Intel Corp. (INTC; + 2.29%).

Most sectors of the S & P finished trading in positive territory. The sector of conglomerates grew the most (+ 1.6%). The largest decline was shown by the base materials sector (-0.4%).

At the time of closing:

Dow 27,269.97  -79.22 -0.29%

S & P 500 3,019.56 +14.09 + 0.47%

Nasdaq 100 8,321.50 +70.10 + 0.85%

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