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US S&P500 and Dow fall from record highs

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Capital Market
Last Updated : Oct 28 2021 | 9:31 AM IST
The US stocks moved mostly down in the choppy trading on Wednesday, 27 October 2021, weighing the S&P 500 and Dow Jones Industrial Average indexes firmly into negative territory after ending Tuesday's trading at new record closing highs, while the tech-heavy Nasdaq ended the day virtually flat. The decline on the Wall Street chiefly due to investors cash in on recent strength and mixed reaction to the latest earnings news.

At the close of trade, the Dow Jones Industrial Average index declined 266.19 points, or 0.74%, to 35,490.69. The S&P500 index fell 23.11 points, or 0.51%, to 4,551.68. The tech-heavy Nasdaq Composite Index rose marginal 0.12 point, or 0.00%, to 15,235.84.

Total volume turnover on U.S. exchanges stood at 10.71 billion shares, down from yesterday's 11.55 billion shares. Declining stocks outnumbered advancing ones on the NYSE exchange by 2379 to 940 and 141 closed unchanged. In the NASDAQ, 1376 issues advanced, 3185 issues declined, and 221 issues unchanged.

Total 9 of 11 sectors ended down along with the S&P500 index, with energy (down 2.86%) was worst performing sector, followed by financials (down 1.69%), materials (down 1.43%), and industrials (down 1.21%) sectors, while communication services (up 0.95%) was best performing sector, followed by consumer discretionary (up 0.24%) sector.

Shares of Microsoft (+4.2%) hit a record high after it forecast a strong end to the calendar year, helped by its booming cloud business.

Google-owner Alphabet jumped 5% after reporting a record quarterly profit on a surge in ad sales.

Shares of Twitter moved sharply lower on the day after the social media reported weaker than expected user growth in the third quarter earnings.

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Shares of General Motors also came under pressure after auto giant reported third quarter earnings and revenues that fell year-over-year.

ECONOMIC NEWS: The Commerce Department released a report on Wednesday showing durable goods orders fell by 0.4% in September after jumping by a downwardly revised 1.3% in August. Excluding a steep drop in orders for transportation equipment, durable goods orders climbed by 0.4% in September after rising by 0.3% in August.

COMMODITY NEWS: Crude oil prices slid over 2% on Wednesday after data showed US crude oil inventories rose by 4.3 million barrels last week, above expectations for a 1.9 million barrel gain. Also, weighing the crude oil prices down was expectation of increasing Iranian supply after Iran and the EU agreed to restart negotiations on a revival of the 2015 nuclear accord. The Brent crude price fell by US$1.82 or 2.1% to US$84.58 a barrel. And the US Nymex crude price lost US$1.99 or 2.4% to US$82.66 a barrel.

Among Indian ADR, Vedanta dropped 5.93% to $16.19, WNS Holdings fell 0.61% to $84.51, Tata Motors shed 2.44% to $32.36, Dr Reddys Labs fell 0.47% to $61.31, Wipro fell 0.22% to $9.17, INFOSYS fell 0.62% to $22.55, and HDFC Bank shed 0.78% to $75.11. ICICI Bank added 0.09% to $21.72.

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First Published: Oct 28 2021 | 9:03 AM IST

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