US close: Stocks stay down after China trade disappointment

Wall Street closed in negative territory on Tuesday, echoing the downward trajectory of Asian and European markets.

The lacklustre performance was primarily driven by subpar export data from China, which stirred concerns regarding the stability of the world's second-largest economy.

At the close, the Dow Jones Industrial Average was down 0.45% at 35,314.49, as the S&P 500 decreased 0.42%, finishing at 4,499.38.

The tech-heavy Nasdaq Composite experienced the steepest drop of the major indices, falling by 0.79% to 13,884.32.

On the currency front, the dollar was in a mixed state, edging up 0.05% on sterling to trade at 78.48p, and by 0.01% against the common currency to 91.28 euro cents.

Against the Japanese yen, the dollar slipped 0.08%, changing hands at JPY 143.26.

“Last week’s US credit rating downgrade seemed like the perfect beginning of a market selloff, but this morning’s abysmal China trade data is a much more compelling reason for investors to cut back on risk,” said IG chief market analyst Chris Beauchamp earlier.

“The losses started in Europe and have now overtaken the US - the odds of a sizeable correction are now much higher.

“A pullback is certainly overdue, and the recent outbreak of confidence about a soft landing also leaves markets vulnerable in the short-term.”

Business confidence rises, trade deficit narrows

On the economic front, small businesses in the US showed a modest uptick in confidence last month, according to the National Federation of Independent Business (NFIB).

Its optimism index nudged from 91.0 in June to 91.9 in July, surpassing economists' expectations of a 90.6 reading.

The hiring sub-index also witnessed a notable rise by two points to 17, a figure that has been consistent since April.

Additionally, intent to hire and investment among businesses saw a positive trajectory, even though fewer firms reported increased selling prices.

In trade news, the US saw a contraction in its trade deficit in June.

The Department of Commerce reported a 4.1% month-on-month decrease, bringing the deficit to $65.5bn - slightly above economists' prediction of a $65bn gap.

That dip was attributed to a 1.0% fall in imports, which totalled $313bn.

Significant declines were recorded in imports of computers of $1.6bn, finished metal shapes of $2.1bn, and crude oil of $1bn.

Exports also experienced a marginal reduction, down by 0.1% from May, reaching $247.5bn.

Bank stocks fall on ratings review; Eli Lilly and Novo Nordisk rise on drug success

In equities, several banking institutions experienced a downward shift after Moody's downgraded the debt ratings of 10 small to medium-sized US banks late on Monday.

The agency has also put under review the ratings of six larger banks, namely Bank of New York Mellon, State Street, Northern Trust, and US Bancorp among others.

The downgrade was attributed to the second-quarter results of many banks which revealed increasing profitability pressures, impacting their capability to generate internal capital.

Moody's cited concerns over a potential recession in early 2024, anticipated higher interest rates, and declining asset quality, particularly in commercial real estate.

By the close on Tuesday, Bank of New York Mellon was down 1.32%, State Street Corporation dropped 1.58%, Northern Trust was off 1.56%, and US Bancorp slipped 0.23%.

Elsewhere, logistics and delivery giant United Parcel Service (UPS) was off 0.88%, in the wake of the firm trimming its full-year margin projections after a challenging second quarter.

UPS reported an 11% year-on-year decline in revenues and a stark 27% dip in profits.

On the upside, Eli Lilly surged 14.87%, riding high on positive quarterly earnings.

The company also raised its annual profit outlook, largely fuelled by the robust performance of its new diabetes drug, Mounjaro, which had found extensive off-label use in weight loss.

That upbeat sentiment was further buoyed by news from competitor Novo Nordisk, whose weight-loss drug Wegovy displayed promising results in clinical trials concerning cardiovascular events in adults dealing with obesity.

The news pushed Novo Nordisk's stock up by 17.23%.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Amgen Inc. (AMGN) $260.85 3.11%
Walt Disney Co. (DIS) $88.13 1.50%
Apple Inc. (AAPL) $179.80 0.53%
Caterpillar Inc. (CAT) $282.76 0.44%
Merck & Co. Inc. (MRK) $106.41 0.30%
Verizon Communications Inc. (VZ) $32.56 0.12%
Procter & Gamble Co. (PG) $157.09 0.11%
Walmart Inc. (WMT) $160.63 0.10%
Cisco Systems Inc. (CSCO) $53.06 0.09%
Johnson & Johnson (JNJ) $173.18 0.05%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $211.58 -2.07%
Goldman Sachs Group Inc. (GS) $348.26 -2.05%
Travelers Company Inc. (TRV) $167.88 -1.32%
Microsoft Corp. (MSFT) $326.05 -1.23%
Walgreens Boots Alliance, Inc. (WBA) $29.53 -1.17%
3M Co. (MMM) $104.12 -1.05%
Unitedhealth Group Inc. (UNH) $505.93 -0.96%
Visa Inc. (V) $239.33 -0.92%
Dow Chemical Co. (DOW) $55.00 -0.92%
Nike Inc. (NKE) $109.69 -0.72%

S&P 500 - Risers

Eli Lilly and Company (LLY) $521.60 14.87%
Dish Network Corp. (DISH) $8.37 9.55%
Perrigo Company plc (PRGO) $39.90 8.53%
Broadridge Fin Sol (BR) $176.84 6.45%
Hanesbrands Inc. (HBI) $5.49 5.37%
Zoetis Inc (ZTS) $189.30 4.77%
Jacobs Solutions Inc. (J) $134.36 4.57%
Dxc Technology Company (DXC) $20.04 3.57%
Fluor Corp. (FLR) $35.39 3.36%
Amgen Inc. (AMGN) $260.85 3.11%

S&P 500 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
International Flavors & Fragrances Inc. (IFF) $64.78 -19.37%
Sealed Air Corp. (SEE) $39.89 -9.51%
Expeditors International Of Washington Inc. (EXPD) $119.32 -4.40%
Teleflex Inc. (TFX) $229.75 -4.34%
Gen Digital Inc. (GEN) $20.26 -3.98%
Resmed Inc. (RMD) $179.27 -3.96%
Willis Towers Watson Public Limited Company (WTW) $203.44 -3.86%
Everest Group (EG) $346.06 -3.52%
Advanced Micro Devices Inc. (AMD) $113.23 -3.06%

Nasdaq 100 - Risers

Dish Network Corp. (DISH) $8.37 9.55%
Biomarin Pharmaceutical Inc. (BMRN) $90.61 3.17%
Amgen Inc. (AMGN) $260.85 3.11%
Expedia Group Inc. (EXPE) $109.84 2.19%
Hasbro Inc (HAS) $65.72 1.39%
American Airlines Group (AAL) $16.18 1.19%
Biogen Inc (BIIB) $274.14 1.07%
Liberty Global plc Series A (LBTYA) $18.58 0.92%
PACCAR Inc. (PCAR) $85.42 0.92%
Liberty Global plc Series C (LBTYK) $19.76 0.92%

Nasdaq 100 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
Gen Digital Inc. (GEN) $20.26 -3.98%
Workday, Inc. (WDAY) $227.54 -2.57%
Micron Technology Inc. (MU) $67.65 -2.49%
Mercadolibre Inc. (MELI) $1,327.89 -2.24%
JD.com, Inc. (JD) $38.05 -2.21%
Seagate Technology Plc (STX) $67.06 -2.12%
Baidu Inc. (BIDU) $143.92 -2.10%
Intuitive Surgical Inc. (ISRG) $302.87 -2.06%
Asml Holdings N.V. (ASML) $679.37 -2.03%