US Stocks fall on profit booking

The major U.S. stock averages ended the day just below the unchanged line on Tuesday, 31 August 2021, as profit booking triggered after the S&P 500 and the Nasdaq ended Monday's trading at new record closing highs. Meanwhile, profit taking also fueled after report from the Conference Board showed a substantial deterioration in U.S. consumer sentiment in the month of August and on caution ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.

At the close of trade, the Dow Jones Industrial Average index declined 39.11 points, or 0.11%, to 35,360.73. The S&P 500 index fell 6.11 points, or 0.13%, to 4,522.68. The tech-heavy Nasdaq Composite Index was down 6.65 points, or 0.04%, to 15,259.24. For the August month, the S&P 500 rose 2.9%, the Nasdaq Composite climbed 4%, and the Dow added 1.2%.

 

Total 7 of 11 S&P500 sectors declined, while remaining 4 sectors closed up. Energy (down 0.73%) sector was worst performer, followed by information technology (down 0.56%), materials (down 0.31%, and industrials (down 0.28%) sectors, while real estate (up 0.62%) sector was best performer, followed by consumer discretionary (up 0.37%) and communication services (up 0.27%) sectors.

Total volume turnover on U.S. exchanges was 8.92 billion shares, up from previous session volume of 7.46 billion shares. In the NYSE exchange, 1837 issues advanced, 1466 issues declined, and 164 issues closed unchanged. In the NASDAQ, 2680 issues advanced, 1733 issues declined, and 221 issues unchanged.

Zoom Video Communications Inc shares fell about 16% on after the video-conferencing software company showed slowing revenue growth in the second quarter.

Shares of Wells Fargo fell more than 5% after reports that the bank could face further sanctions as regulators are upset about the pace of progress in compensating victims of Wells Fargo's previous scandals.

ECONOMIC NEWS: US Consumer Confidence Deteriorates Substantially In August- US consumer confidence index tumbled to 113.8 in August from a downwardly revised 125.1 in July, according to a report released by the Conference Board on Tuesday. With the bigger than expected decrease, the index slumped to its lowest level since hitting 95.2 in February of 2021.

Among Indian ADR, INFOSYS rose 0.42% to $23.82, Vedanta added 0.55% to $16.46, HDFC Bank added 0.19% to $78.31, Wipro added 1.63% to $9.34, Dr Reddys Labs added 1.63% to $64.21, and ICICI Bank added 1.71% to $19.62. Tata Motors fell 0.4% to $19.68 and WNS Holdings was down 0.17% to $82.94.

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