Wall Street dragged down by industrial, discretionary stocks

A Wall Street sign is seen in front of the New York Stock Exchange in New York's financial district, March 4, 2013. — Reuters picA sign is seen in front of the New York Stock Exchange in New York’s financial district, March 4, 2013. — Reuters picNEW YORK, Aug 18 — opened lower today, extending losses from a day earlier, as losses in industrial and consumer discretionary stocks weighed.

Ten of the 11 major S&P indexes were lower, with the industrial sector’s 0.41 per cent fall leading the decliners.

Deere’s 7.6 per cent fall was the biggest drag on the sector after the farm equipment maker reported a second straight quarter of lower-than-expected sales.

Nike’s 4.7 per cent slide weighed the most on the S&P and the Dow, following dismal results from sporting goods retailers Foot Locker and Hibbett.

The S&P 500 posted its biggest one-day percentage loss in about three months yesterday amid concerns over President Donald Trump’s ability to legislate his pro-growth agenda.

Trump has alienated Republicans, corporate leaders and US allies, while rattling markets with his comments since Saturday’s violence in Charlottesville, Virginia, which came in the aftermath of a white nationalist protest against the removal of a Confederate statue.

Several business leaders have since resigned from his advisory councils and a White House official said plans for an infrastructure council had been dropped.

Adding to the woes were a speculation of a possible departure of National Economic Council Director Gary Cohn, which was denied by the White House yesterday.

At 9.41am ET (1341 GMT/9.41pm Malaysian time), the Dow Jones Industrial Average was down 39.72 points, or 0.18 per cent, at 21,711.01 and the S&P 500 was down 6.44 points, or 0.27 per cent, at 2,423.57.

The Nasdaq Composite was down 7.81 points, or 0.13 per cent, at 6,214.10.

Earlier in the week, minutes from the Federal Reserve’s July meeting showed officials were concerned about recent readings that remain below the Fed’s 2 per cent target rate, clouding the path of interest this year.

Dallas Fed Chief Robert Kaplan will speak at an event later in the day. Kaplan, a policymaker in the Fed’s cautious camp, said yesterday the Fed should be “very patient and judicious” as it considers whether to raise rates.

Economic reports today include the University of Michigan’s consumer sentiment survey data for August due at 10am ET (1400 GMT).

Shares of Estee Lauder were up 4.66 per cent after the cosmetics maker’s full-year profit forecast came ahead of estimates.

Applied Materials was up 3.5 per cent after the company’s quarterly profit beat estimates, helped by strong growth in its semiconductor and display businesses.

NYSE-listed shares of India’s Infosys fell about 8 per cent after chief executive, Vishal Sikka, resigned.

Declining issues outnumbered advancers on the NYSE by 1,844 to 726. On the Nasdaq, 1,727 issues fell and 656 advanced. — Reuters

Source: The Malay Mail Online

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.