Major US stock indexes fell on Thursday after data showed that labor productivity in the US non-farm payrolls fell sharply in the first quarter, as investors assess the comments of the International Monetary Fund, calling for the Fed to delay raising rates.
For example, labor productivity in the United States fell in the early months of 2015, becoming the confirmation bad start of the year for the economy. Labour productivity in the non-agricultural workers, which is measured as the production of goods and services in the hour worked decreased by 3.1% to a seasonally adjusted in the first quarter, the Labor Department said Thursday. Compared with the previous year performance was above 0.3%. Economists had forecast a decline from the previous quarter by 2.9%.
At the same time, the number of Americans who first applied for unemployment benefits fell last week, a sign that companies are laying off fewer workers, and the economy continues to steadily adding jobs. Primary applications for unemployment benefits, a measure of layoffs throughout the US, fell by 8 thousand. And seasonally adjusted reached 276 thousand. For the week ended May 30. This Labor Department said Thursday. Economists had expected 279 thousand. Primary applications.
The price of oil fell today, while continuing trend yesterday amid speculation that the Organization of Petroleum Exporting Countries to refrain from changing production quotas at tomorrow's meeting. Experts believe that OPEC will do nothing to reduce the excess supply of oil on the world market. Only 1 out of 34 analysts and traders surveyed by Bloomberg, expects the cartel any change quotas. The rest of the forecast, the restrictions will once again confirmed at the level of 30 million barrels per day.
Almost all components of the index DOW closed in the red (29 of 30). Outsider shares were EI du Pont de Nemours and Company (FDD, -2.37%). Shares rose only The Goldman Sachs Group, Inc. (GS, + 0.14%).
All sectors of the index S & P ended the day below zero. Outsiders were the basic materials sector (-1.6%).
At the close:
Dow -0.94% 17,907.11 -169.16
Nasdaq -0.79% 5,059.13 -40.10
S & P -0.86% 2,095.87 -18.20
Major U.S. stock-indexes fell on Thursday after data showed U.S. nonfarm productivity fell sharply and investors digested the International Monetary Fund's comment urging the Federal Reserve to delay a rate hike. Wall Street was pressured earlier in the day due to a persistent selloff in the global bond market after the ECB said that investors should get used to volatility in the market. The selloff, however, eased by mid-morning with U.S. long-term Treasury debt yields falling from eight-month peaks. The IMF said the Fed should not raise rates until there are clear signs of a pickup in wages and inflation.
Most of Dow stocks in negative area (28 of 30). Top looser - E. I. du Pont de Nemours and Company (FDD, -1.78%). Top gainer - The Goldman Sachs Group, Inc. (GS, +0.44%).
All S&P index sectors in negative area. Top looser - Basic Materials (-1.3%).
At the moment:
Dow 17938.00 -158.00 -0.87%
S&P 500 2099.50 -16.50 -0.78%
Nasdaq 100 4497.25 -30.25 -0.67%
10-year yield 2.34% -0.02
Oil 58.19 -1.45 -2.43%
Gold 1174.10 -10.80 -0.91%
Stocks and U.S. equity-index futures stayed lower after a report showed fewer Americans filed applications for unemployment benefits last week.
Global markets:
Nikkei 20,488.19 +14.68 +0.07%
Hang Seng 27,551.89 -105.58 -0.38%
Shanghai Composite 4,947.1 +37.12 +0.76%
FTSE 6,878.9 -71.56 -1.03%
CAC 4,982.56 -51.61 -1.03%
DAX 11,306.95 -112.67 -0.99%
Crude oil $59.32 (-0.54%)
Gold $1180.80 (-0.35%)
(company / ticker / price / change, % / volume)
AMERICAN INTERNATIONAL GROUP | AIG | 61.23 | +0.20% | 1.5K |
Home Depot Inc | HD | 113.10 | -0.05% | 0.2K |
McDonald's Corp | MCD | 96.44 | -0.08% | 0.6K |
Pfizer Inc | PFE | 34.38 | -0.09% | 4.0K |
American Express Co | AXP | 80.49 | -0.14% | 2.0K |
Boeing Co | BA | 143.60 | -0.15% | 0.9K |
Freeport-McMoRan Copper & Gold Inc., NYSE | FCX | 19.84 | -0.15% | 2.5K |
Chevron Corp | CVX | 102.01 | -0.16% | 3.2K |
Exxon Mobil Corp | XOM | 84.80 | -0.18% | 1.1K |
General Motors Company, NYSE | GM | 35.87 | -0.19% | 5.7K |
Caterpillar Inc | CAT | 86.06 | -0.20% | 5.7K |
The Coca-Cola Co | KO | 40.79 | -0.20% | 0.9K |
Ford Motor Co. | F | 15.17 | -0.20% | 3.2K |
Citigroup Inc., NYSE | C | 55.50 | -0.23% | 5.2K |
Facebook, Inc. | FB | 82.25 | -0.23% | 373.1K |
E. I. du Pont de Nemours and Co | DD | 71.10 | -0.24% | 0.1K |
JPMorgan Chase and Co | JPM | 66.54 | -0.24% | 9.0K |
Walt Disney Co | DIS | 110.90 | -0.24% | 1.3K |
Goldman Sachs | GS | 207.76 | -0.25% | 0.2K |
General Electric Co | GE | 27.46 | -0.25% | 1.0K |
International Business Machines Co... | IBM | 169.50 | -0.25% | 3.6K |
3M Co | MMM | 159.75 | -0.26% | 0.1K |
Travelers Companies Inc | TRV | 100.75 | -0.26% | 1.1K |
Twitter, Inc., NYSE | TWTR | 36.90 | -0.27% | 140.8K |
Visa | V | 68.75 | -0.29% | 0.3K |
Johnson & Johnson | JNJ | 99.80 | -0.29% | 2.7K |
UnitedHealth Group Inc | UNH | 118.00 | -0.30% | 1.5K |
Merck & Co Inc | MRK | 60.21 | -0.30% | 8.9K |
ALCOA INC. | AA | 12.57 | -0.32% | 22.9K |
Apple Inc. | AAPL | 129.70 | -0.32% | 244.6K |
Amazon.com Inc., NASDAQ | AMZN | 435.20 | -0.32% | 6.6K |
Yahoo! Inc., NASDAQ | YHOO | 43.07 | -0.32% | 203.7K |
Intel Corp | INTC | 32.62 | -0.34% | 7.6K |
AT&T Inc | T | 34.90 | -0.37% | 1.3M |
Starbucks Corporation, NASDAQ | SBUX | 51.92 | -0.39% | 0.9K |
Microsoft Corp | MSFT | 46.66 | -0.41% | 24.5K |
United Technologies Corp | UTX | 118.00 | -0.43% | 0.8K |
Google Inc. | GOOG | 538.00 | -0.43% | 0.1K |
Cisco Systems Inc | CSCO | 28.96 | -0.45% | 6.5K |
Procter & Gamble Co | PG | 78.20 | -0.46% | 2.9K |
Barrick Gold Corporation, NYSE | ABX | 11.91 | -0.67% | 18.3K |
Tesla Motors, Inc., NASDAQ | TSLA | 247.31 | -0.67% | 13.9K |
ALTRIA GROUP INC. | MO | 50.01 | -0.68% | 0.1K |
Yandex N.V., NASDAQ | YNDX | 17.96 | -1.16% | 3.4K |
Verizon Communications Inc | VZ | 48.00 | -2.20% | 69.1K |
Upgrades:
AT&T (T) upgraded from Neutral to Overweight at JP Morgan, target raised from $35 to $40
Downgrades:
Verizon (VZ) downgraded to Neutral from Overweight at JP Morgan
Other:
The Australian Bureau of Statistics released its trade data for Australia on Thursday. Australia's trade deficit widened to A$3.89 billion in April from A$1.23 billion in March, missing expectations for a rise to a deficit of A$2.3 billion. March's figure was revised up from a deficit of A$1.32 billion.
The increase in deficit was driven by lower export prices of key commodities such as iron ore and coal continued to weigh.
Exports plunged by 6% in April, while imports increased by 4%, driven by a 69% gain in the machinery and industrial equipment.
The Federal Reserve released its Beige Book on Wednesday. The report showed an optimistic picture of the U.S. economy despite the mixed U.S. economic data in the second quarter.
According to the report, "overall economic activity expanded during the reporting period from early April to late May".
The growth was characterized as "moderate" and "modest" in the most districts.
Consumer spending rose across all districts except Richmond, according to the Beige Book.
Employment and wages increased slightly, while prices "were stable or ticked up".
German Finance Minister Wolfgang Schaeuble said on Wednesday that there is no reason to be optimistic that a deal between Greece and its creditors can be reached soon. He added that new reform proposals submitted by the Greek government indicated only little changes.
"I have no information that anything decisive has changed in terms of substance," Schaeuble said.
St. Louis Federal Reserve President James Bullard changed its tone on the Fed's monetary policy outlook on Wednesday. His tone is cautious now.
"I think that will all be transient and it will turn out that we'll have stronger data later in the year and that will enable us to get going with the normalization process. But I would like to see that confirmed in the near term so that we can get on with our normalization process," Bullard said.
The St. Louis Federal Reserve president pointed out that the weak U.S. economic growth in the first quarter was temporary, but he added that he would like to see stronger data.
Bullard is not a voting member on the Federal Open Market Committee this year.
(index / closing price / change items /% change)
Nikkei 225 20,473.51 -69.68 -0.34 %
Hang Seng 27,657.47 +190.75 +0.69 %
Shanghai Composite 4,909.98 -0.55 -0.01 %
FTSE 100 6,950.46 +22.19 +0.32 %
CAC 40 5,034.17 +29.71 +0.59 %
Xetra DAX 11,419.62 +90.82 +0.80 %
S&P 500 2,114.07 +4.47 +0.21 %
NASDAQ Composite 5,099.23 +22.71 +0.45 %
Dow Jones 18,076.27 +64.33 +0.36 %