FX.co ★ The U.S. stock market review

Amid weak labour market data and worse service sector figures the main indexes lost positions gained on Wednesday after strong rising motion in the previous trading sessions. Such data revived the investors waiting for quick economic recovery, and showed the real situation in the service sector.
Dow Jones Industrial Average lowered by 39.22 or by 0.4% to 9280.97. S&P 500 decreased by 2.93 points or by 0.3% to 1002.77. Nasdaq Composite Index ticked down by 18.26 or by 0.9% to 1993.05.

According to the published reports, the Purchasing Managers Index in the U.S. non-production sector in July amounted to 46,4 against 47,0 in June and 44,0 in May. The index dynamics approves that activity weakening pace in the U.S. non-production sector rose moderately in July, compared to the preceding month. The business confidence index in the U.S. non-manufacturing sector reached the mark of 46,1 versus 49,8. The economists were waiting for PMI to touch 48,2 in July.
The issued reports of Automatic Data Processing Inc. and Macroeconomic Advisers consultancy company showed that the U.S. private sector employment rate fell by 371 000 in July, consensus 350 000 drop.

While almost all sectors are on the downside, the financial sector has climbed by 3.5%. Thus, American International Group shares rose by 63%, CIT Group - by 41%, Fannie Mae and Freddie Mac - by 30%. Fortress Investment Group shares had jumped by 13% after the company reported contracting losses.

Dow Jones Industrial Average

Nasdaq Composite Index

S&P500

Kind regards,

Analyst: Vladimir Donin