Breaking News

You are here » Indian-Commodity  :  International & World Stock  :  US markets closed mostly lower on Fed statement

28-Jul2016

US markets closed mostly lower on Fed statement

The US markets closed mostly lower on Wednesday, after the Federal Reserve signaled a willingness to raise benchmark interest rates in the fall. In its policy statement, the Fed stated that near-term risks to the economic outlook have been diminished, suggesting that a rate hike in September may be appropriate. According to CME Group's FedWatch tool, the market sees an 18% probability of a September rate hike, compared with a 30% probability before the statement. The Fed stated that information received since the Fed policy committee met in June indicates that the labor market strengthened and that economic activity has been expanding at a moderate rate. Job gains were strong in June, and household spending has been growing at a brisk clip. Yet the central bank also noted that business investment remained soft. At the same time, Fed officials stated that they would continue to closely monitor inflation indicators and global economic and financial developments. The committee repeated that it expects economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate. There was no reference to the specific timing of the next potential rate hike. Kansas City Fed President Esther George, who wanted a rate hike now, was the lone dissenter.

On the economy front, orders for durable or long-lasting goods made in the US sank 4% in June, marking the biggest drop in almost two years and reflecting ongoing struggles by American manufacturers to drum up sales and help boost the US economy. The only standout performer: Auto makers. Orders for new cars and trucks rose 2.6%, reversing a similar decline in the prior month. New orders fell most sharply for commercial airplanes and expensive military hardware such as ships, tanks and fighter jets. Passenger plane bookings dove nearly 60% and orders for defense capital goods dropped 21%. Stripping out the volatile transportation sector, orders fell a smaller 0.5%. Core orders are also 3.8% lower through the first half of the year compared to the same period in 2015. The increase in durable-goods orders in May, meanwhile, was revised to show a 2.8% decline instead of 2.3%.

The Dow Jones Industrial Average was down by 1.58 points or 0.01 percent to 18,472.17, S&P 500 lost 2.60 points or 0.12 percent to 2,166.58, while the Nasdaq added 29.76 points or 0.58 percent to 5,139.81. 

The Indian ADRs closed mostly in green; HDFC Bank was up 0.46%, ICICI Bank was up 0.15% and Tata Motors was up 0.10%. On the other hand, Dr. Reddy's Lab was down 0.29% and Infosys was down by 0.05%. 




Related News

View all news

US markets extend gains on optimism about trade leads

Extending gains for fourth straight session, the US markets ended sharply higher on Friday, with gains of over a percent each, as traders continued to express optimism about trade talks between the US......

US markets end higher on hopes of easing trade tensions

Magnifying their gains for third straight day, the US markets ended higher on Thursday on report that the US is considering lifting some tariffs on Chinese products in an effort to elicit more concessions......

US markets end higher for second straight session

Extending their gains for second straight day, the US markets ended higher on Wednesday, on the back of upbeat earnings report from financial institutions such as Bank of America (BAC) and Goldman Sachs......

Top News

View all news

Spicejet's cargo arm launches freighter services on Guwahati-Hong Kong route

Spicejet's cargo arm SpiceXpress has launched dedicated freighter services between Guwahati and Hong Kong with a weekly flight, starting January 19, 2019. With this launch, SpiceXpress will be the first......

Reliance Industries to invest Rs 3 lakh crore in Gujarat in next 10 years

Reliance Industries has committed to invest Rs 3 lakh crore in various projects in the next 10 years in Gujarat that may range from energy and petrochemical to new technology and digital business. The......

Wipro reports 32% rise in Q3 consolidated net profit

Wipro has reported results for third quarter ended December 31, 2018. The company has reported a rise of 39.56% in its net profit at Rs 2,518.40 crore for the quarter under review as compared to Rs 1,804.50......