Major US stock indexes finished trading in the red

Major US stock indexes have declined markedly, as investors analyzed a block of mixed quarterly reports indicating a slowdown in the global economy, as well as comments from the President of the European Central Bank (ECB) on monetary policy.

About a third of the S & P 500 companies have already announced financial results for the second quarter. According to FactSet, of these companies, 75% reported receiving quarterly earnings that exceeded expectations. After the close of the trading session, the publication of quarterly reports Alphabet (GOOG), Amazon (AMZN), Intel (INTC) and Starbucks (SBUX) is expected.

On Wall Street, the ECB President Draghi’s comments were also carefully considered on the eve of a key Fed meeting next week. The head of the ECB said he did not see a significant risk of recession in the region. Many traders saw this as a sign that the incentives offered would be less significant than expected. Earlier, the ECB kept interest rates unchanged, hinting at a further easing of monetary policy, as well as lower rates.

Market participants also studied several important macroeconomic reports. A report from the Ministry of Labor showed that the number of initial claims for unemployment benefits fell to a three-month low last week, indicating a steady strength of the labor market, even though the economy seems to be losing momentum. According to the report, the number of applications for unemployment benefits fell from 10,000 to 206,000, taking into account seasonal fluctuations in the week to July 20, which is the lowest level since mid-April. Economists predicted that the number of applications will increase to 219,000.

At the same time, a report published by the US Department of Commerce showed a much stronger than expected growth in new orders for durable goods in the US in June, although the report also showed a much sharper than previously reported drop in orders in May. Orders rose 2.0% after falling to a revised 2.3% in May. Economists had expected orders to rise by 0.7% compared with a decrease of 1.3%, which was originally reported.

Most of the DOW components recorded a decline (20 of 30). Outsider were shares of Dow Inc. (DOW; -3.83%). The growth leader was Caterpillar Inc. (CAT; + 2.08%).

All sectors of the S & P finished trading in the red. The largest decline was in the raw materials sector (-1.2%).

At the time of closing:

Dow 27,144.94 -125.03 -0.46%

S & P 500 3,003.92 -15.64 -0.52%

Nasdaq 100 8,238.54 -82.96 -1.00%