FX.co ★ The US stock market review

After a steady growth in the first half of the trading session, the stock indexes closed with a small increase. Better than expected house sales index and the worst private consumption index for 4 years led to the narrow-ranged trading. Dow Jones Industrial Average improved by 33.63 points, or 0.4% to 9320.19, the highest closing level since November, 4. Dow rose by 2.8% over the last 4 trading sessions. Standard & Poor’s 500 took up by 3.02 points or 0.3% to 1005.65. Nasdaq Composite index climbed to 2.70 points or 0.1% to 2011.31.

The Americans’ earnings showed the most dramatic decline in June for 4 years, which resulted in rising unemployment rate, which has become a problem for economy struggling with recession. The US Department of Commerce announced about it on Tuesday. The personal income fell by 1, 3% in June on the seasonal adjusted basis, compared to the last month. That was the earnings drop-down which happened to be the most large-scaled since January 2005, when it slid by 2, 3% followed the growth of income by 1, 3% in May. In accordance with the National Association of Realtors, the current house sales index grew by 3.6% that exceeded the analysts’ expectations. These figures had a positive impact on the housing market shares that led to the financial sector improvement. Thus, Apartment Investment & Management shares gained by 8.7%, ProLogis – by 6.1%, Kimco Realty – by 7.5%, Zions Bancorp- by 7.1%, Wells Fargo – by 2.9%.
Due to the fact that oil prices dropped, the most companies’ shares of the energy sector followed the same dynamics: BJ Services fell by 3.6%, Rowan – by 4. 7%.
As for the financials issue, the UBS shares declined by 7.6% after the Bank of Switzerland reported the 7 sequent quarter losses. Archer Daniels Midland shares came down by 5.2% after the news release about reducing the quarter profit by 83%. PPL shares decreased by 13% after weak results publication in Q2 that surprised the investors.

DJIA

NASDAQ Composite

S&P500

Kind regards,

Analyst: Vladimir Donin.