US open: Traders lock-in profits, focus on tech-giants and Capital Hill
By Alexander Bueso
Date: Thursday 20 Jul 2017
(ShareCast News) - Stocks took a breather following mixed economic data and ahead of key corporate updates from tech heavyweights Microsoft and eBay.
At 1639 BST, the Dow Jones Industrial Average was dipping lower by 0.26% or 55.69 points to 21,584.58, the S&P 500 by 0.13% or 2.98 points to 2,470.84 and the Nasdaq Composite by 0.12% or 3.03 points to 2,470.62.
On Wednesday, the Nasdaq and S&P 500 hit records highs, boosted by strength in the technology sector and a solid earnings release from Morgan Stanley.
"After an impressive run recently, the Dow Jones, S&P 500 and NASDAQ 100 all retreated from record highs as traders lock in their profits. The major US equity indices were grinding out fresh record highs after fresh record highs, and traders are taking of their cash off the table.
"The political problems that Donald Trump is suffering from doesn't encourage traders to remain long as there are doubts over what else the Republican Party may be divided over. The weakness in the US dollar today couldn't prop up the US equity markets as political trouble for Trump spells problems for both the greenback and stocks," said David Madden, market analyst with CMC Markets UK.
Initial weekly US employment claims fell by 15,000 during the week ending on 15 July, a new cycle and record low (consensus: 245,000), according to the Department of Labor.
However, the Federal Reserve bank of Philadelphia's regional manufacturing gauge slipped from 27.6 for June to 19.5 in May (consensus: 23.0), with the new orders sub-index down from 25.9 to 2.1 -its lowest reading since August 2016.
In parallel, the Conference Board's index of leading economic indicators jumped by 0.6% on the month in June (consensus: 0.4%).
On the US corporate front, Bank of New York Mellon was higher after it released second-quarter earnings per share of $0.88 and sales of $3.96bn versus estimates of $0.84 and $3.89bn.
Chip designer Qualcomm was lower after missing analysts' forecasts for its bottom line in the third quarter and after issuing weaker than expected third quarter guidance, with the latter failing to mention sales related to Apple products.
Stock in insurer Travelers was lower alongside, having delivered mixed second quarter results.
Home Depot was a top faller, with market commentary linking the move in its shares to rival Sear's announcement that it would begin selling its Kenmore line of white goods via Amazon.com.
After the close, Microsoft, eBay and Visa were slated to report.
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