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U.S. stock markets closed lower on Tuesday as market participants waited for the policy statement of the Fed's FOMC meeting. Wall Street reversed its five-day winning streak despite a series of solid economic data released yesterday. All the three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% to close at 35,058.52. Notably, 17 components of the 30-stock index ended in the red while 13 in green. The major loser of the blue-chip index was Intel Corp. (INTC - Free Report) declining 2.1%. Intel carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 14,660.58, sliding 1.2% or 180.14 points due to weak performance by technology behemoths.
Meanwhile, the S&P 500 dropped 0.5% to end at 4,401.46. The Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) decreased 1.2% and 1%, respectively. On the other hand, the Utilities Select Sector SPDR (XLU) increased 1.7%. Six out of eleven sectors of the broad-market index closed in red while five in green.
The fear-gauge CBOE Volatility Index (VIX) jumped 10.1% to 19.36. A total of 10.36 billion shares were traded on Tuesday, lower than the last 20-session average of 9.86 billion. Decliners outnumbered advancers on the NYSE by a 1.87-to-1 ratio. On Nasdaq, a 2.65-to-1 ratio favored declining issues.
Fed's FOMC Meeting In Focus
The two-day policy meeting of the Fed, called the FOMC meeting, has started on Jul 27. On Jul 28, the central bank will give a statement regarding decisions taken by its members. Investors will keenly watch FOMC meeting to see whether the central bank maintains its stand that the current inflation is transitory. Also, any indication about the tapering of the existing $120 billion bond-buying program of the Fed will be of immense importance for market participants.
Economic Data
The Department of Commerce reported that durable goods (manufacturing goods that last for three years or more) orders increased 0.8% in June, lagging the consensus estimate of 2.4%. However, the important point here is that orders are increasing steadily despite the fact that manufacturers are facing severe supply-chain bottleneck and shortage of skilled labor. Meanwhile, May's data was revised upward from an increase of 2.3% to 3.2%.
The core durable goods orders (orders for non-defense capital goods excluding aircraft) increased 0.5% in June in line with the last month. This metric is used as a proxy for business spending plan. Shipments of core capital goods increased 0.6% after growing 0.9% in May. Notably, this metric is used to calculate equipment spending in the U.S. GDP measurement. Business investment accelerated in 13 out of last 14 months.
The Conference Board reported that consumer confidence index increased to 129.1 in July, marking its highest since February 2020 and surpassed the consensus estimate of 125. Last month's data was also revise upward from 127.3 to 128.9. U.S. consumer confidence has increased six month in a row.
The Present Situation Index, which gauges consumers’ views on current market conditions, rose to 160.3 in July from 159.6 in June. The Expectations Index, which is a measure of consumers’ short-term (next six months) outlook for income, business and labor market conditions, fell marginally to 108.4 in July from 180.5 in June.
The S&P CoreLogic Case-Shiller report revealed that nationally home prices jumped 16.6% in May year over year, marking the highest reading in data series' more than 30 years of history. The metric increased 14.8% year over year in April.
The 10-city composite increased 16.4% in May year over year compared with 14.5% in April. The 20-city composite increased 17% in May year over year compared with 15% in April. All 20 cities reported higher price increase in May compared with April.
C.H. Robinson Worldwide’s (CHRW - Free Report) second-quarter 2021 earnings of $1.44 per share surpassed the Zacks Consensus Estimate of $1.31. The bottom line surged 35.8% year over year. (Read More)
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Stock Market News for Jul 28, 2021
U.S. stock markets closed lower on Tuesday as market participants waited for the policy statement of the Fed's FOMC meeting. Wall Street reversed its five-day winning streak despite a series of solid economic data released yesterday. All the three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% to close at 35,058.52. Notably, 17 components of the 30-stock index ended in the red while 13 in green. The major loser of the blue-chip index was Intel Corp. (INTC - Free Report) declining 2.1%. Intel carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 14,660.58, sliding 1.2% or 180.14 points due to weak performance by technology behemoths.
Meanwhile, the S&P 500 dropped 0.5% to end at 4,401.46. The Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) decreased 1.2% and 1%, respectively. On the other hand, the Utilities Select Sector SPDR (XLU) increased 1.7%. Six out of eleven sectors of the broad-market index closed in red while five in green.
The fear-gauge CBOE Volatility Index (VIX) jumped 10.1% to 19.36. A total of 10.36 billion shares were traded on Tuesday, lower than the last 20-session average of 9.86 billion. Decliners outnumbered advancers on the NYSE by a 1.87-to-1 ratio. On Nasdaq, a 2.65-to-1 ratio favored declining issues.
Fed's FOMC Meeting In Focus
The two-day policy meeting of the Fed, called the FOMC meeting, has started on Jul 27. On Jul 28, the central bank will give a statement regarding decisions taken by its members. Investors will keenly watch FOMC meeting to see whether the central bank maintains its stand that the current inflation is transitory. Also, any indication about the tapering of the existing $120 billion bond-buying program of the Fed will be of immense importance for market participants.
Economic Data
The Department of Commerce reported that durable goods (manufacturing goods that last for three years or more) orders increased 0.8% in June, lagging the consensus estimate of 2.4%. However, the important point here is that orders are increasing steadily despite the fact that manufacturers are facing severe supply-chain bottleneck and shortage of skilled labor. Meanwhile, May's data was revised upward from an increase of 2.3% to 3.2%.
The core durable goods orders (orders for non-defense capital goods excluding aircraft) increased 0.5% in June in line with the last month. This metric is used as a proxy for business spending plan. Shipments of core capital goods increased 0.6% after growing 0.9% in May. Notably, this metric is used to calculate equipment spending in the U.S. GDP measurement. Business investment accelerated in 13 out of last 14 months.
The Conference Board reported that consumer confidence index increased to 129.1 in July, marking its highest since February 2020 and surpassed the consensus estimate of 125. Last month's data was also revise upward from 127.3 to 128.9. U.S. consumer confidence has increased six month in a row.
The Present Situation Index, which gauges consumers’ views on current market conditions, rose to 160.3 in July from 159.6 in June. The Expectations Index, which is a measure of consumers’ short-term (next six months) outlook for income, business and labor market conditions, fell marginally to 108.4 in July from 180.5 in June.
The S&P CoreLogic Case-Shiller report revealed that nationally home prices jumped 16.6% in May year over year, marking the highest reading in data series' more than 30 years of history. The metric increased 14.8% year over year in April.
The 10-city composite increased 16.4% in May year over year compared with 14.5% in April. The 20-city composite increased 17% in May year over year compared with 15% in April. All 20 cities reported higher price increase in May compared with April.
Stock That Have Made Headline
C.H. Robinson Q2 Earnings Beat, Increase 36% Y/Y
C.H. Robinson Worldwide’s (CHRW - Free Report) second-quarter 2021 earnings of $1.44 per share surpassed the Zacks Consensus Estimate of $1.31. The bottom line surged 35.8% year over year. (Read More)