Major US stock indexes finished trading in negative territory

The main US stock indices dropped significantly amid rumors about the departure of Gary Cohn, the head of the National Economic Council, an American investment banker who for over a quarter of a century worked in the investment and financial conglomerate Goldman Sachs Group.

In addition, the number of Americans applying for unemployment benefits fell to a six-month low last week, indicating a further strengthening of the labor market that could prompt the Federal Reserve to develop a plan to begin winding down its bond portfolio. Primary applications for unemployment benefits fell by 12,000 to 232,000 people for the week ending August 12, the Ministry of Labor said.

However, the report submitted by the Federal Reserve Bank of Philadelphia showed that the index of business activity in the manufacturing sector fell slightly in August, reaching a level of 18.9 points compared to 19.5 points in July. Economists had expected the decline to 18.5 points.

The index of leading indicators from the Conference Board (LEI) for the US increased by 0.3 percent in July to 128.3 (2010 = 100), after an increase of 0.6 percent in June and 0.3 percent in May. The index of coinciding indicators increased by 0.3 percent to 115.7 (2010 = 100), after an increase of 0.1 percent in June and 0.3 percent in May. The index of lagging indicators increased by 0.1 percent in July to 124.8 (2010 = 100), after an increase of 0.2 percent in June and 0.2 percent in May.

All components of the DOW index recorded a decline (30 out of 30). Outsider were the shares of Cisco Systems, Inc. (CSCO, -4.11%).

All sectors of the S & P index showed a drop. The greatest decrease was shown by the technological sector (-1.7%).

At closing:

DJIA -1.24% 21,750.94 -273.93

Nasdaq -1.94% 6,221.91 -123.20

S & P -1.54% 2,430.01 -38.10