Major US stock indexes finished trading in negative territory

Major US stock indexes fell moderately, being under pressure from Donald Trump's statements that the United States and China “have a long way to go” to reach a trade agreement. In addition, investors have ambiguously responded to the statements of the three largest US banks.

Statements by the President of the United States questioned the progress in trade negotiations between Washington and Beijing. Trump also added that the US may impose additional tariffs on Chinese imports amounting to $ 325 billion, "if we want." Trump's comments came after China and the United States agreed not to exacerbate trade tensions, trying to resume negotiations.

Market participants also received a block of mixed statistical data. Thus, the report of the Ministry of Commerce showed that retail sales in June increased by 0.4%, which corresponds to the downwardly revised May value. Economists had expected retail sales to grow by 0.1% compared with a 0.5% increase, which was originally reported in the previous month.

At the same time, the Department of Labor said that US import prices fell most strongly in June in 6 months due to lower prices for oil and other goods, suggesting that imported inflation remains restrained. According to the report, import prices fell by 0.9% last month, the biggest decline since December. Economists had forecast a fall in prices by 0.7%. For 12 months to June, import prices fell by 2.0% after declining by 1.1% in May.

Fed data showed that industrial output remained unchanged last month after a 0.4% increase in the previous month. Economists had forecast a 0.1% increase in industrial production in June.

A report by the National Association of Home Builders (NAHB) and Wells Fargo indicated that the mood of home builders in the United States improved slightly as the housing shortage increased. According to the report, the housing market index from the NAHB rose by only 1 point in July, to 65 points. However, the value of the indicator above the level of 50 points indicates favorable sales prospects. Experts expected the index to remain at the level of 64 points.

Most of the components of DOW finished trading in the red (19 out of 30). Intel Corporation (INTC; -1.66%) turned out to be an outsider. The growth leader was Dow Inc. (DOW; + 2.72%).

Most sectors of the S & P recorded a decline. The largest drop was shown by the base materials sector (-0.8%). The industrial goods sector grew the most (+ 0.5%).

At the time of closing:

Dow 27,335.63 -23.53 -0.09%

S & P 500 3,004.04 -10.26 -0.34%

Nasdaq 100 8,222.80 -35.39 -0.43%