Stocks slid for a third session on Thursday as investors digested the latest round of earnings and economic data.
The Dow Jones Industrial Average dropped 290.91 points, or 0.84 per cent, to close at 34,474.83. It was the first time the 30-stock Dow closed below the 50-day moving average since June 1, a potential warning sign of a downtrend.
Meanwhile, the S&P 500 fell 0.77 per cent and ended the session at 4,370.36. The Nasdaq Composite declined 1.17 per cent, falling to 13,316.93.
The 10-year U.S. Treasury yield reached its highest point since October 2022 on Thursday.
Rates are continuing to run higher after the Federal Reserve’s July meeting minutes, released Wednesday, showed the central bank remains concerned about upside risk to inflation.
Jobless claims for the week ended Aug 12 fell from the previous period and came in slightly under the Dow Jones estimate. The Philadelphia Federal Reserve also reported an uptick in its manufacturing index in August.
Walmart declined more than 2 per cent even after reporting an earnings and revenue beat in the fiscal second quarter. The company also raised its full-year guidance and underscored strength in grocery and online sales.
On a positive note, computer networking company Cisco Systems gained more than 3 per cent on a better-than-expected quarterly earnings report.
Stocks have been suffering through a rocky August, with the major averages headed toward another losing week and in negative territory for the month. The broad market index is now down more than 4 per cent in August.
In commodity-related news, aluminium prices are expected to stay low due to weak demand in China and surplus supply. The outlook for metal consumption is dim due to reduced manufacturing in China, the US, and Europe. China’s recovery is sluggish after easing its COVID policy, and uncertainty surrounds its stimulus plans. Global central banks’ interest rate hikes are also dampening industry activity.
And gold prices hit a five-month low due to factors including higher Treasury yields, a strong dollar, and a hawkish stance on interest rates from the Federal Reserve, dampening investor confidence; other commodities like base metals also faced challenges tied to liquidity issues and concerns about the Chinese property sector’s impact on local government financing vehicles.
Turning to US sectors, Energy was the best performer, and only one that finished in the green, closing 1.1 per cent higher. Consumer Discretionary was the worst performer.
Futures
The SPI futures are pointing to a 0.4 per cent fall.
Currency
One Australian dollar at 7:20 AM was buying 64.04 US cents.
Commodities
Gold shed 0.68 per cent. Silver gained 0.81 per cent. Copper added 0.92 per cent. Oil gained 1.27 per cent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.63 per cent, Frankfurt lost 0.71 per cent, and Paris closed 0.94 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei fell 0.44 per cent, Hong Kong’s Hang Seng shed 0.01 per cent while China’s Shanghai Composite closed 0.43 per cent higher.
The Australian sharemarket closed 0.68 per cent lower at 7146
Ex-dividends
Ansell (ASX:ANN) is paying 39.5584 cents unfranked
GWA Group (ASX:GWA) is paying 7 cents fully franked
Lendlease Group (ASX:LLC) is paying 11.1 cents 41.94 per cent franked
Newcrest Mining (ASX:NCM) is paying 30.5577 cents fully franked
Dividends payable
Advanced Share Registry (ASX:ASW)
Centuria Industrial REIT (ASX:CIP)
Cromwell Property Group (ASX:CMW)
Centuria Capital Group (ASX:CNI)
Centuria Office REIT (ASX:COF)
CVC (ASX:CVC)
Fonterra Shareholders Fund (ASX:FSF)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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