Stocks are Mixed after Wall Street Ended a Winning Streak
Wall Street ended Wednesday in the mixed ground. The Dow Jones and Selective S&P 500 posted losses. However, the Nasdaq composite index reached its second consecutive record.
At the close of the NYSE session, the Dow Jones dropped by 0.21% or 71.34 points, to 33,874.24. Meanwhile, the S&P 500 lost 0.11% or 4.60 points, to 4,241,84.
The Nasdaq, listing the main technology companies, advanced by 0.13% or 18.47 points, to 14,271.73.
The New York Stock traded in a limited range during the session. It was generally positive, but still, it lost momentum at the last minute. Investors betted on caution after receiving new data on the economy. The Markit Manufacturing Purchasing Managers Index for June came in at 62.6, exceeding economists’ projections of 61.5.
The market looks settled
The Federal Reserve has managed to carry the economy through the coronavirus pandemic by super-low rates. The central bank’s economic policy has made investing simple. They sustained prices across markets, and any change would make a big deal. For this reason, shares immediately dropped after the Fed’s report last week.
Analysts believe that the market has settled now, and investors seem to make peace with last week’s shock they received by the Fed’s statement.
Analysts expect markets to be more sensitive to economic data since they have embraced the idea that the money cycle is changing. There is a possibility for stocks to trade flat from now on, and their move will depend on the hearing from the Fed and other central banks.
Among the thirty Dow Jones stocks, 3M was the most affected. It plunged by 1.42%. IMB followed it, losing 1.20%. Meanwhile, intel lost 1.09%. As for the gains, Walt Disney posted the most significant increase adding 1,05%. Goldman Sachs increased by 0.98%.
Japan closed flat after starting the day positively
Japan shares closed with gains on Thursday. Paper & Pulp, Railway & Bus, and Real Estate sectors posted significant increases. However, values flattened at the end of the session, and Nikkei 225 ended with a 0% change.
The Tokyo stock market started a day on the rise, supported by a weak yen that favors exports. However, because investors were concerned about a rebound in coronavirus infections, they limited gains.
The index showed a moderately positive trend with an identifiable resistance area at 29,222.3 and estimated support at 28,269.2.
The companies that posted the most significant gains in the session were Inpex Corp, which advanced by 2.73% or 23.0 points to 865.0. Chiyoda Corp. increased by 2.71% or 12.0 points to 454.0. Meanwhile, Mitsui Mining and Smelting Co. climbed by 2.65% or 80.0 points to 3095.0.
As for those who lost, the air and land transport sector reaped the most significant losses. Isetan Mitsukoshi Holdings Ltd. yielded 3.15% or 26.0 to 800.0. Japan Railway dropped by 2.74% or 179.0 points to 6353.0. At the same time, ANA Holdings Inc plunged by 2.67% or 74.0 points to 2692.5.
In the first section, 1,107 shares saw gains while 943 values decreased; 140 shares ended unchanged.
The trading volume amounted to 1.94 trillion yen.
China’s SSE ends flat while Hang Seng gains 0.23%
The stock market in China settled slightly higher. Consumer and new energy companies were the biggest gainers of the day. At the same time, worries of a slip in drug prices hit healthcare companies’ values. Among the 251 products, the average price reduction was 56%. Hengrui, Asymchem Laboratories Tianjin Co Ltd, and Bloomage Biotechnology Corp Ltd plunged between 4.4% and 5.5%.
The Hang Seng index finished with a gain of 65.39 points or 0.23% at 28,882.46. The Hang Seng China Enterprises index rose by 0.03% to 10,677.31. Xinyi Solar Holdings Ltd registered the most significant rise by 3.35%. At the same time, Techtronic Industries Co Ltd sank by 2%.
Trading was slightly better in Shanghai. However, some sharp swings took it into negative territory.
China’s PPI is likely to increase in June by 10%. This will generate pressure on downstream consumers.
