The S&P 500 index showed 13 new 52-week highs and no new lows, while the Nasdaq recorded 42 new highs and 25 new lows. Growth in USA gross domestic product in the second quarter came in below expectations, fueling arguments the Federal Reserve may not raise interest rates anytime soon.
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The S&P 500 and the Dow dipped in afternoon trading on Monday, as a drop in oil prices dragged down energy stocks, while tech names Apple and Alphabet helped drive the Nasdaq higher. A reading above 50 indicates expansion in the manufacturing sector. The index is trading near 17.4 times forward 12-month earnings, above the 10-year median of 14.7 times, according to StarMine data. Meanwhile, Carmike Cinemas (CKEC), Dun & Bradstreet (DNB), General Growth Properties (GGP), Tenet Healthcare (THC), and Williams Companies (WMB) issue quarterly results after the bell.
Petroleum-linked shares tumbled on Monday on lower oil prices, while gains by Apple and other technology shares lifted the Nasdaq.
At 1639 GMT (10:09 p.m.in India), the Dow Jones Industrial Average was down 112.79 points, or 0.61 per cent, at 18,291.72.
SolarCity Corp (SCTY.O) fell 7.4 percent to $24.72 and Tesla Motors (TSLA.O) declined 2 percent, to $230.01, after Tesla said the two companies had agreed to merge. Tesla dropped 2.0 per cent. Analysts have cautioned that the deal could divert Tesla from its ambitious plan to expand production of electric cars. Verizon lost 1.6 percent.
Hedge funds and other large speculators are the most bearish on the pound in nearly 25 years amid speculation the Bank of England will cut interest rates for the first time in more than seven years this week.
Other biotech shares were also strong, with Gilead Sciences advancing 1.3 percent and Celgene 2.2 percent.
European stocks fell to two-week lows on Tuesday, while the yen rose against the dollar and government bonds sold off after Japan’s cabinet approved a fiscal stimulus package to revive the flagging economy.
June consumption up 0.4 pct vs est.
Their conviction is being tested as Treasuries slipped after Dudley said investors are underestimating how many times the central bank will raise rates and Dallas Fed President Robert Kaplan said an increase in September is “very much on the table”.
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The Nasdaq Composite was down 57.71 points, or 1.11 percent, at 5,126.49. For instance, Amazon’s profits increased for the fifth straight quarter, according to its second quarter earnings report released last week, sending its stock up 43% over the past year.
