Major US stock indices fell moderately, interrupting the three-day rally, as the decline in financial companies outweighed the solid growth in shares of the retailer Home Depot (HD).
Shares of major US banks such as Citigroup (C), Bank of America (BAC) and J.P. Morgan Chase (JPM) fell in price amid falling treasury yields. Yields on 10-year bonds fell 5 basis points to 1.55%.
Home Depot reported a quarterly profit of $ 3.17 per share, which was higher than the average forecast of analysts at $ 3.08. However, the company's revenue was slightly below forecasts. In addition, comparable sales increased by 3% compared to analysts forecast + 3.5%. Home Depot said its sales were affected by lower sawnwood prices, and it lowered its full-year sales forecast, noting that tariffs could affect US consumer spending. However, HD stock prices jumped 4.63%.
Investors look forward to the publication of the minutes of the July meeting of the Federal Reserve System (FRS) on Wednesday, as well as statements by Fed Chairman Jerome Powell on Friday at the annual conference of central banks in Jackson Hole (Wyoming). Powell's comments will be closely monitored for tips on whether to expect further easing of the policy amid the ongoing trade war with China and growing fears of an impending recession, signaled by an inversion of the US bond yield curve last week.
Most DOW components recorded a decrease (25 out of 30). Outsiders were shares of Dow Inc. (DOW, -5.39%). The biggest gainers were Home Depot Inc. (HD, + 4.63%).
Almost all S&P sectors completed trading in the red. The largest decline was shown by the financial sector (-0.8%). Only the conglomerate sector grew (+ 0.8%).
At the time of closing:
Dow 25,962.44 -173.35 -0.66%
S&P 500 2,900.51 -23.14 -0.79%
Nasdaq 100 7,948.56 -54.25 -0.68%
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