The US Stock Market Fell After The Chinese Stock Market
US stock indexes fell on Thursday after the fall of the Chinese stock market, investors also evaluated statistics from China and the US.
At the same time, the Dow Jones indicator interrupted the growth that lasted four days in a row.
Increasing tensions between Washington and Beijing reduce investor demand for stocks and other risky assets, MarketWatch writes, citing analysts' opinions.
The Hong Kong autonomy law, signed this week by President Donald Trump, allows the administration to impose new sanctions against Chinese officials, US Secretary of state Mike Pompeo said.
As reported by the New York Times, citing informed sources, the Trump administration is considering a complete ban on entry to the United States of members of the Chinese Communist Party and their family members in accordance with this law.
The Chinese Foreign Ministry on Wednesday protested to US Ambassador to China Terry Branstad against Washington's sanctions, calling them "gross interference in China's Internal Affairs" and "a serious violation of international law." Beijing also warned of retaliatory measures against Washington.
Meanwhile, China's economy grew by 3.2% in the past quarter, returning to growth after a historic decline in the previous three months, according to data published on Thursday by the state statistical office of China.
Meanwhile, the number of Americans who applied for unemployment benefits for the first time in the week ending July 11 decreased by 10 thousand and amounted to 1,300 million people, according to a report from the US Department of labor. Experts expected a drop in the number of applications last week to an average of 1,250 million, according to data from Trading Economics.
Retail sales in the United States in June increased by 7.5% compared to the previous month, the Ministry of Commerce of the country reported.
Experts on average predicted growth of 5%, according to data from Trading Economics. MarketWatch respondents expected a 5.4% increase.
The index of manufacturing activity in Philadelphia in July fell to 24.1 points from 27.5 points but exceeded the expectations of analysts, who predicted a figure of 20 points, writes Trading Economics. The subindex that tracks employment showed a positive reading for the first time since March.
On Thursday, the stocks of technology companies. Microsoft Corp. (SPB: MSFT) lost about 2% in value, Apple Inc. (SPB: AAPL) - 1.2%, Amazon.com Inc. (SPB: AMZN) - 0.3%. At the same time, Netflix Inc. (SPB: NFLX) securities rose 0.8% ahead of the report.
Morgan Stanley's capitalization increased by 2.5%. One of the largest US banks increased its net profit and revenue in the second quarter, with both indicators exceeding analysts ' expectations.
Domino's Pizza Inc. (SPB: DPZ) declined 1.5 percent, despite the pizza chain reporting a second-quarter increase in net income to $118.7 million, or $2.99 per share, from $92.4 million, or $2.19 per share. Revenue increased to $920 million from $811.6 million. Analysts polled by FactSet, on average, predicted net income of $2.24 per share on revenue of $915 million.
The cost of Bank of America Corp. (SPB: BAC) decreased by 2.7%. Net income of the second-largest US Bank by assets declined in the second quarter of 2020 on the back of increased provisions for possible loan losses, but the indicator was better than market forecasts.
Twitter Inc. (SPB: TWTR) shares fell 1.1% after the accounts of a number of famous people were hacked, allegedly for the purpose of committing cyber fraud.
The Dow Jones Industrial Average fell 135.39 points (0.5%) to 26734.71 points.
The Standard & Poor's 500 lost 10.99 points (0.34%) to 3,215.57 points.
The Nasdaq Composite fell 76.66 points (0.73%) to 10473.83 points.