‘Football’ in August with small losses for Wall

Wall Street’s main indexes ended with small losses on Monday after continuous changes in the sign, with investors appearing hesitant to follow up on the impressive rally in July after the disappointing macroeconomic data that saw the light of day.

The Dow Jones Industrial Average closed July with a total gain of 6.7%, while the broader S&P 500 gained 9.1%. Those were the strongest performances for the two indexes since November 2020. The tech Nasdaq, meanwhile, soared 12.3% to record its strongest July in history and its biggest gain since April 2020.

The American market was boosted last month by strong corporate results which in most cases exceeded analysts’ estimates, despite the strong shocks experienced by the economy from the inflation rally.

At the same time, investors appeared more optimistic that the Federal Reserve will take the foot off the gas on interest rate hikes, moving in the coming months to a milder tightening of its policy. The US central bank confirmed analysts’ estimates last week, raising interest rates by 75 basis points for the second straight session.

Indicators – Statistics

On the board, the Dow Jones lost 46.73 points, or -0.14%, to close at 32,798.40, while the S&P 500 fell 11.66 points, or -0.28%, to 4,118.63. The tech Nasdaq was down 21.74 points, or -0.18%, at 12,368.98.

Of the 30 stocks that make up the Dow Jones industrial index, 12 closed with a positive sign and 18 with a negative. The biggest rise was seen by Boeing with gains of $9.76 or 6.13% to $169.07, followed by Procter & Gamble at $142.90 with an increase of 2.87% and Intel with gains of 1 .79% to $36.96.

Biggest losers were Chevron (-2.00%), Caterpillar (-1.71%) and Travelers (-1.53%)

However, the data announced on Friday showed that inflationary pressures remain particularly intense in the economy. The price index for personal consumption expenditures, the Fed’s preferred gauge of inflation, rose 1% in June from the previous month, beating analysts’ estimates of a 0.9% rise. The annual index rose 6.8%, the highest level since January 1982.

On Sunday, Federal Reserve Bank of Minneapolis Governor Neel Kashkari said the central bank remains committed to its 2 percent inflation target, while admitting that “we are a long way from achieving that goal.”

At the end of the day, two different exhibitions that saw the light of day today showed a further slowdown in US manufacturing activity in July, confirming that the inflation rally and ongoing disruptions in global supply chains continue to weigh on the sector.

Meanwhile, the barrage of corporate results continues this week. More than 170 S&P 500 companies reported their results last week, with another 150 to follow this week. Of the Dow Jones, only two companies report their quarterly statements this week, Caterpillar on Tuesday and Amgen on Thursday.

Source: Capital

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