The stock markets in the United States fell due to the weakness of equities in the commodities sector and the increasing concern regarding the global economy.
In an interview with Bloomberg, John Carey, a fund manager at Pioneer Investment Management commented, “China numbers were weak, and I think there’s a growing concern about the general overseas economic pictures, and how that might affect U.S. economy.”
The equities of companies in the commodity sector fell after the official Purchasing Manager’s Index in China dropped to 50 in July. Zhao Qinghe, a senior statistician at the National Statistics Bureau, commented that the internal and external demands for country’s manufacturing sector are still weak.
A separate report from the Institute of Supply Management (ISM) showed that the manufacturing sector in the United States dropped to 52.7% last month from 53.5% in June.
[drizzle]“At this point the focus is largely falling on the Fed, so the macro becomes the dominant conversation in terms of will they or won’t they. That’s really the conversation point through what is likely to be a slow month. Everyone’s going to be focusing on the economic data,” said BTIG Chief Global Strategist Dan Greenhaus.
- Dow Jones Industrial Average (DJIA) – 17,598.20 (-0.52%)
- S&P 500- 2,098.04 (-0.28%)
- NASDAQ- 5,115.38 (-0.25%)
- Russell 2000- 1,231.79 (-0.56%)
- EURO STOXX 50 Price EUR- 3,635.40 (+0.96%)
- FTSE 100 Index- 6,688.62 (-0.11%)
- Deutsche Borse AG German Stock Index DAX- 11,443.72 (+1.19%)
- Nikkei 225- 20,548.11 (-0.18%)
- Hong Kong Hang Seng Index- 24,411.42 (-0.91%)
- Shanghai Shenzhen CSI 300 Index- 3,829.24 (+0.33%)
Stocks in Focus
The stock price of Tyson Foods declined more than 10% to $39.83 per share. The company posted financial results that missed the expectations of Wall Street analysts. Tyson Foods said its third-quarter earnings of $0.80 per share, lower than the $0.92 per share consensus estimate. Its revenue was $10.07 billion, below the $10.3 billion expected by analysts.
Frontier Communications gained more than 9% to $5.15 per share. The company reported second-quarter earnings that beat the consensus estimate of Wall Street analysts. Frontier Communications generated earnings of $0.03 per share on $1.37 billion in revenue. Analysts expected the company to deliver earnings of $0.02 per share I $1.37 billion in revenue.
The stock value of Sears Holdings tanked 10% to $19.39 per share. The retailer updated its financial performance for the second quarter and indicated a double-digit decline in comparable store sales.