NEW YORK: US stocks closed little changed on Thursday (Aug 3) after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings.
The Dow Jones Industrial Average fell 66.63 points, or 0.19%, to 35,215.89, the S&P 500 lost 11.5 points, or 0.25%, to 4,501.89 and the Nasdaq Composite added 11.77 points, or 0.08%, to 13,985.21.
The benchmark US 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch’s downgrade of the top-tier US credit rating. In late afternoon trade, the 10-year yield had dipped below 4.194.
“It’s really relative to just pricing against bond yields,” said Tom Hainlin, national investment strategist at US Bank Wealth Management in Minneapolis. “Higher yield on 10-year treasuries, ... has challenged the attractiveness of stocks.”
A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remain tight.
Investors were waiting for July’s jobs report, due on Friday.
Another report showed the US services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up. Richmond Federal Reserve president Thomas Barkin said US inflation remained too high, although recent readings indicated price pressures easing.
Eight of the eleven main S&P 500 sectors declined, with more interest rates sensitive Utilities and Real Estate leading losses, dropping 2.3% and 1.4% respectively.
After the closing bell, Amazon.com shares surged when the online retailer forecast third-quarter revenue above Wall Street expectations, boosted by its Prime Day sale event in July that drew price-conscious consumers to its platform.
Apple shares dipped less than 1% in extended trade after the iPhone maker reported quarterly results that beat forecasts.
Second-quarter earnings for companies in the S&P 500 are now expected to fall 5% from a year earlier, according to Refinitiv data.
Qualcomm shares dropped 8.2% after a gloomy forecast signalled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal Holdings tumbled 12.3% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement. – Reuters
Source: The Sun Daily
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