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Market news

8 July 2019

Major US stock indexes finished trading in the red

Major US stock indexes fell moderately, as Apple (AAPL) and Boeing (BA) were under pressure, while expectations of an aggressive reduction in the Fed's interest rates weakened.

The value of Apple shares (AAPL) fell by more than 2% after Rosenblatt Securities analyst reported downgrading to “Sell” (“Sell”) from “Neutral” (“Neutral”), saying that the company would face with a “fundamental deterioration” in the next six to twelve months, as iPhone sales are disappointing, while sales of other Apple products are slowing.

Shares of Boeing (BA) lost 1.4% of the value under pressure from reports that the company lost an order for 50 Max 737 aircraft at a total cost of $ 5.9 billion from Flyadeal, Saudi Arabia’s low-cost airline, which instead chose Airbus A320 aircraft.

The unexpectedly strong June job data released on Friday forced traders to reconsider their expectations of an aggressive reduction in interest rates, although they still see the likelihood of a Fed rate cut at a meeting of July 30-31. Expectations to cut rates by 50 basis points dropped to 6% from about 20% a week ago, according to the FedWatch CME Group tool.

Several Fed officials are planning to speak this week, including its chairman, Jerome Powell, who investors hope will give more clues about the immediate prospects for monetary policy. Mr. Powell will speak three times this week, including on Wednesday and Thursday, when he presents a semi-annual report on monetary policy in Congress. In addition, on Wednesday will be published minutes of the June Fed meeting.

Most of the components of DOW finished trading in the red (20 of 30). Outsider were shares of Apple Inc. (AAPL; -2.12%). The growth leader was NIKE Inc. (NKE; + 1.83%).

Almost all sectors of the S & P recorded a decline. The industrial goods sector decreased the most (-0.9%). Without change, the utilities sector and the base materials sector completed their biddings.

At the time of closing:

Dow 26,806.14 -115.98 -0.43%

S & P 500 2,975.95 -14.46 -0.48%

Nasdaq 100 8,098.38 -63.41 -0.78%

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