Get Breaking Alerts on Stocks Before The Mainstream Media

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We guarantee you to keep your privacy
Connect with us
Financial Press
market-snapshot:-dow-win-streak-at-risk-ahead-of-tech-results-as-china-crackdown-threatens-rally
market-snapshot:-dow-win-streak-at-risk-ahead-of-tech-results-as-china-crackdown-threatens-rally

Breaking

Market Snapshot: Dow win streak at risk ahead of tech results as China crackdown threatens rally

Stocks traded moderately lower Tuesday morning ahead of quarterly results from some of the most prominent names in the technology sector, as a Chinese regulatory crackdown threatened the investing mood on Wall Street.

The developments in Asia come as investors are also waiting for economic reports this week, including second quarter GDP, and a policy update from the Federal Reserve on Wednesday.

How are stock benchmarks trading?
  • The Dow Jones Industrial Average
    DJIA
    dropped 163.16 points, or 0.5%, to 34,981.15.

  • The S&P 500
    SPX
    was down 30.59 points, or 0.7%, at 4,391.71.

  • The Nasdaq Composite
    COMP
    declined 251.99 points, or 1.7%, at 14,588.72.

On Monday, major benchmarks closed at record highs for a second straight session. The Dow and the S&P 500 each rose 0.2%, and the Nasdaq Composite inched higher to also set a fresh record.

What’s driving the market?

A multiday win streak for the S&P 500 index and the Dow were in jeopardy Tuesday as investors worried about a selloff in Hong Kong’s Hang Seng Index, which has put pressure on risk assets around the globe.

But analysts noted that U.S. stocks were trading near all-time highs and that considerations closer to home were likely to call the tune for markets.

The “two big factors” over the course of the next week remain “earnings reports and what we hear from the Federal Reserve,” said Bill Northey, senior investment director at U.S. Bank Wealth Management, in an interview, adding that “this is against a backdrop of a very strong economic recovery” that was underscored by a strong July consumer-confidence reading Tuesday morning.

The Conference Board’s closely followed index of consumer confidence edged up to 129.1 this month from a revised 128.9 in June, hitting a 16-month high.

The Hang Seng HK:HSI ended 4.2% lower in Asian overnight trade, marking its second consecutive drop of more than 4%, amid China’s regulatory crackdown on technology stocks.

Meituan
HK:3690
shares dived after China published rules requiring online food platforms to pay minimum wage, but the selling was broad-based, with technology giants Tencent
HK:700
and Alibaba
HK:9988

BABA
each seeing sharp declines.

Some investors do fear that the selling in Asia may dim the shine of a strong U.S. corporate earnings reporting season thus far.

“This crackdown on private businesses from China is significantly denting market sentiment despite a better-than-expected earnings season so far,” said Pierre Veyret, technical analyst at ActivTrades.

See: How China’s stock-market meltdown puts U.S. investors at risk

Meanwhile, the Federal Reserve kicks off its two-day policy meeting.

In other U.S. economic data, orders for durable goods rose 0.8% in June, well below the 2% rise expected by economists. May orders, however, were revised to show a 3.2% rise versus an initial estimate of 2.3%.

The S&P CoreLogic Case-Shiller Home Price Index showed a 16.6% year-over-year rise in May, up from the previous record of 14.8% set last month. The separate 20-city index, which gauges home prices across a group of major cities across the country, increased over the past year by 17% in May, up from 15% in the prior month.

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We are Spam free & Secure 🙂

After the close Tuesday, U.S. tech giants Alphabet GOOG, Apple AAPL and Microsoft MSFT were expected to report quarterly results. Analysts said positioning ahead of tech earnings could help account for the underperformance of the tech-heavy Nasdaq Composite relative to other major indexes Tuesday.

Earnings Outlook: Apple, Microsoft, Google, Facebook, Amazon and Tesla headline the biggest week of earnings

Which companies are in focus?
What are other markets doing?
  • The yield on the 10-year Treasury note
    BX:TMUBMUSD10Y
    fell 3.3 basis points to 1.243%. Yields and debt prices move in opposite directions.

  • The ICE U.S. Dollar Index
    DXY,
    a measure of the currency against a basket of six major rivals, was down 0.3%.

  • Oil futures edged lower, with the U.S. benchmark
    CL00
    off 0.2%, while gold futures
    GC00
    edged down 0.2%.

  • In European equities, the Stoxx 600 Europe index
    XX:SXXP
    fell 0.5% and London’s FTSE 100
    UK:UKX
    was down 0.4%.

Steve Goldstein contributed to this report.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Breaking

Treasury yields rose across the board on Monday, with the 30-year long bond hovering near the psychologically significant level of 2% and the benchmark...

Breaking

Amazon.com Inc.’s plans for higher wages and a bigger workforce will put pressure on the company’s profit and EBIT, Morgan Stanley says, driving down...

Breaking

Bank stocks have had a good run in 2021, but they still lag behind the broader market’s recovery since the pandemic doldrums of 2020....

Breaking

As Washington teeters closer to a possible government shutdown at midnight Thursday, here’s why the status of the nation’s debt ceiling may ignite more...

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We are Spam free & Secure :)

Get Breaking Stock Alerts

Email address

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address