Major US stock indexes ended the session mixed after earlier in the course of trading updated their record highs in response to a sharp increase in quarterly earnings of several companies, in particular Facebook and Verizon (VZ).
Considering that almost half of the companies from the S & P 500 reported on the financial results for the second quarter, the total profit of the companies in this index probably increased by 9%, according to FactSet. Recall that in the 1st quarter total profit grew at the fastest pace in almost six years.
A small influence on the dynamics of trading was provided by statistical data for the United States. As it became known, the number of Americans applying for unemployment benefits rose in late July, but remained almost at the lowest level in recent decades, reflecting a strong labor market. Initial applications for unemployment benefits in the period from July 16 to July 22 increased by 10 000 to 244 000, taking into account seasonal fluctuations. It was predicted that the number of hits will be 241,000.
Meanwhile, the US Department of Commerce said that orders for durable goods soared in June to a three-year high. Orders for durable goods increased by 6.5%. Expected to increase by 3%. However, except for aircraft and cars, orders rose by 0.2%, and the key indicator of investment in business fell for the first time in 2017. A key measure of business investment fell for the first time since December - the basic orders for capital goods fell by 0.1%. However, the main orders for the last 12 months increased by 5.6%, which is the fastest indicator since 2012.
The components of the DOW index finished the trades in different directions (14 in negative territory, 16 in positive territory). Leader of growth were the shares of Verizon Communications Inc. (VZ, + 7.43%). Outsider were shares Apple Inc. (AAPL, -2.10%).
Most sectors of the S & P index showed a decline. The largest drop was shown by the sector of conglomerates (-1.3%). The industrial goods sector grew most (+ 0.2%).
At closing:
DJIA + 0.39% 21.796.55 +85.54
Nasdaq -0.63% 6.382.19 -40.56
S & P -0.10% 2,475.42 -2.41