Stock Indices Dip After Touching Record Highs
US stock futures were edging down in value as the trade week began, slumping after notching record highs last week prior to observance of Independence Day on Friday, as China spreads its economic wings.
Monday, July 7, 2014 - 00:00
Investors were cautiously optimistic about trading on Monday yet were unlikely to implement sizable deals considering the dawning of earnings season. Prior to US markets' closing until this morning, strong job market data for last month released last Thursday by the US Department of Labor helped drive the indices higher. Setting a precedent, the Dow surged past the psychological mark of 17,000.
Today, just after 10 a.m. in New York, the Nasdaq slightly dipped 0.33%, a loss of 15.05 points to 4,471.16; the S&P 500 fell 0.33%, a dive of 6.49 points to 1,978.95; and the Dow edged down 0.38%, a loss of 65.21 points to 17,003.05.
Several companies are slated to release economic results from the second quarter and the first half of 2014. Analysts are anticipating strong returns from S&P 500-listed firms.
Strong June jobs data benefits indices
The unemployment rate last month fell to its lowest level since the end of the third quarter of 2008, representing another demonstration as to the US' recovering economy. The second quarter of the year in the world's largest economy was stronger than the first, when much of the country was plagued by harsh cold weather.
The stronger data from April to June suggested to some analysts and investors that the Fed is prepared to boost borrowing costs sooner than later. The US economy created 288,000 jobs last month, exceeding the projections of many economists.
China encourages economic growth
The economy of the globe's second largest economy also is expanding, according to The Associated Press. The government of the Asian nation will steer clear of implementing strong economic stimulus measures, Premier Li Keqiang said on Monday while appearing with Chancellor Angela Merkel of Germany. China's highest-level economic official said the nation intends to advance with reforms that will adjust markets.
And next in line to convene with Chinese economic officials is the US, whose Treasury Department will conduct discussions later this week, Bloomberg reports. The US-China Strategic and Economic Dialogue is scheduled for Wednesday and Thursday. Key topics for the US include leaning on China to advance economic openings and spur the yuan's growth.
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