US Stocks slips on recession worries

2 Aug 2022 , 08:33 AM

The US stock market finished session slightly lower on Monday, 01 August 2022, the first trading session of month, as the looming possibility of recession after manufacturing activity in July rose at the weakest rate in nearly two years and data from Europe and Asia showed factory activity slowing or contracting in the face of dampened global demand and persistent inflation. However, fairly encouraging corporate earnings updates helped limit markets downside. At the close of trade, the Dow Jones Industrial Average index declined 46.73 points, or 0.14%, to 32,798.40. The S&P500 index dropped 11.66 points, or 0.28%, to 4,118.63. The tech-heavy Nasdaq Composite Index decreased by 21.71 points, or 0.18%, to 12,368.98. Total 7 of 11 S&P500 sectors closed lower, with energy issue suffered largest percentage loss, falling 2.2%, followed by real estate (down 0.9%), financials (down 0.9%), energy (down 0.8%), and healthcare (down 0.7%) issues. Consumer staple sector enjoyed largest percentage gain, rising 1.2%. Shares of energy firms suffered the most losses after crude prices headed lower as global factory data weighed on the demand outlook. U.S. crude fell 4.73% to settle at 93.89$ per barrel, and Brent settled at $100.03 per barrel, down 3.94% on the day. Boeing shares climbed more than 6% on reports that the Federal Aviation Administration had approved the jet maker to restart deliveries of its 787 Dreamliner. ECONOMIC NEWS: The Institute for Supply Management latest report showed that the ISM Manufacturing PMI edged lower to 52.8 in July of 2022 from 53 in June. The reading pointed to a 26th straight month of rising factory activity but the weakest rate since June of 2020. The ISM Manufacturing Employment sub index increased to 49.90 points in July from 47.30 points in June. The ISM Manufacturing New Orders sub index decreased to 48 points in July from 49.20 points in June of 2022. The Commerce Department released a report showing construction spending in the US fell by seasonally adjusted 1.1% MoM to $1.76 trillion in June, compared to the revised 0.1% increase in May. The S&P Global US Manufacturing PMI was revised slightly lower to 52.2 in July of 2022 from a preliminary of 52.3, pointing to the lowest factory growth since July of 2020. Among Indian ADR, Tata Motors added 7.2% to $30.58, INFOSYS added 0.67% to $19.62, Wipro added 1.13% to $5.36, and HDFC Bank added 0.45% to $63.08. Dr Reddys Labs added 0.72% to $51.48. ICICI Bank declined 0.24% to $20.73, WNS Holdings fell 0.1% to $86.62, and Azure Power Global fell 3.6% to $11.80.Powered by Capital Market – Live News