At the close of trade, the Dow Jones Industrial Average index advanced 53.79 points, or 0.15%, to 34,987. The S&P 500 index fell 14.27 points, or 0.33%, at 4,360. The tech-heavy Nasdaq Composite Index was down 101.82 points, or 0.7%, to 14,543.
Total 6 of 11 S&P 500 sectors inclined, with energy (down 1.41%) sector was worst performer, tracking a drop in crude prices on expectations of more supply after a compromise agreement between leading OPEC producers. Meanwhile, information technology (down 0.84%), consumer discretionary (down 0.64%), and communication services (down 0.54%) issues were also notable losers. On the other hand, utilities (up 1.19%) sector was top gainer, followed by consumer staples (up 0.42%) and financials (up 0.38%) sectors.
Concerns over how long higher inflation will linger as well as worry that the Federal Reserve may reduce its level of support weighed on sentiments. The Federal Reserve's chief said recent inflation was uncomfortably above the levels that the central bank seeks and sounded somewhat less confident about the economic outlook than earlier in the year.
ECONOMIC NEWS: Growth In US Industrial Production Slows To 0.4% In June- US industrial production increased 0.4% in June after moving up 0.7% in May, the Federal Reserve reported on Thursday. In June, manufacturing output edged down 0.1%, as an ongoing shortage of semiconductors contributed to a decrease of 6.6% in the production of motor vehicles and parts. Excluding motor vehicles and parts, factory output increased 0.4%. The output of utilities advanced 2.7%, reflecting heightened demand for air conditioning, as much of the country experienced a heat wave in June. The index for mining increased 1.4%. For the second quarter as a whole, total industrial production rose at an annual rate of 5.5%. Manufacturing output increased at an annual rate of 3.7% despite a drop of 22.5% for motor vehicles and parts. At 100.1% of its 2017 average, total industrial production in June was 9.8% above its year-earlier level but 1.2% below its pre-pandemic (February 2020) level. Capacity utilization for the industrial sector rose 0.3 percentage point in June to 75.4%, a rate that is 4.2 percentage points below its long-run (1972-2020) average.
US Initial Jobless Claims Hit New Pandemic Lows- In the week ending July 10, the advance figure for seasonally adjusted initial claims was 360,000, a decrease of 26,000 from the previous week's revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week's level was revised up by 13,000 from 373,000 to 386,000. The 4-week moving average was 382,500, a decrease of 14,500 from the previous week's revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week's average was revised up by 2,500 from 394,500 to 397,000.
New York Manufacturing Index Accelerates To Record High In July- The Federal Reserve Bank of New York released a report on Thursday showing a substantial acceleration in the pace of growth in New York manufacturing activity in the month of July. The New York Fed said its general business conditions index soared to 43.0 in July from 17.4 in June, with a positive reading indicating growth in regional manufacturing activity. With the much bigger than expected increase, the New York Fed's general business conditions index reached a new record high. The spike by the headline index came as the new orders index jumped to 33.2 in July from 16.3 in June, while the shipments index shot up to 43.8 from 14.2. The employment index also advanced to 20.6 in July from 12.3 in June, indicating strong job growth during the month. Looking ahead, the New York Fed said firms remained optimistic that conditions would improve over the next six months, although the index for future business conditions slid to 39.5 in July from 47.7 in June.
Among Indian ADR, Tata Motors fell 0.19% to $20.52, INFOSYS fell 1.22% to $21.13, Vedanta fell 0.69% to $14.44, Dr Reddys Labs shed 0.83% to $72.54, WNS Holdings fell 0.07% to $80.90, and ICICI Bank added 0.39% to $17.98, while HDFC Bank added 1.31% to $74.99 and Wipro added 1.51% to $8.08.
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