Analytics, News, and Forecasts for CFD Markets: stock news — 17-08-2017.

The main US stock indices dropped significantly amid rumors about the departure of Gary Cohn, the head of the National Economic Council, an American investment banker who for over a quarter of a century worked in the investment and financial conglomerate Goldman Sachs Group.

In addition, the number of Americans applying for unemployment benefits fell to a six-month low last week, indicating a further strengthening of the labor market that could prompt the Federal Reserve to develop a plan to begin winding down its bond portfolio. Primary applications for unemployment benefits fell by 12,000 to 232,000 people for the week ending August 12, the Ministry of Labor said.

However, the report submitted by the Federal Reserve Bank of Philadelphia showed that the index of business activity in the manufacturing sector fell slightly in August, reaching a level of 18.9 points compared to 19.5 points in July. Economists had expected the decline to 18.5 points.

The index of leading indicators from the Conference Board (LEI) for the US increased by 0.3 percent in July to 128.3 (2010 = 100), after an increase of 0.6 percent in June and 0.3 percent in May. The index of coinciding indicators increased by 0.3 percent to 115.7 (2010 = 100), after an increase of 0.1 percent in June and 0.3 percent in May. The index of lagging indicators increased by 0.1 percent in July to 124.8 (2010 = 100), after an increase of 0.2 percent in June and 0.2 percent in May.

All components of the DOW index recorded a decline (30 out of 30). Outsider were the shares of Cisco Systems, Inc. (CSCO, -4.11%).

All sectors of the S & P index showed a drop. The greatest decrease was shown by the technological sector (-1.7%).

At closing:

DJIA -1.24% 21,750.94 -273.93

Nasdaq -1.94% 6,221.91 -123.20

S & P -1.54% 2,430.01 -38.10

U.S. stock-index futures fell on Thursday. The focus remained on the minutes from the latest meeting of the Federal Open Market Committee (FOMC) meeting, which were released yesterday afternoon and showed members were split on the inflation outlook. Along with the Fed minutes, the sentiment was also negatively impacted by the U.S. President Donald Trump's decision to disband two business councils after a number of members quit in protest over his comments on white nationalists.

Global Stocks:

Nikkei 19,702.63 -26.65 -0.14%

Hang Seng 27,344.22 -64.85 -0.24%

Shanghai 3,268.62 +22.17 +0.68%

S&P/ASX 5,779.21 -5.89 -0.10%

FTSE 7,403.39 -29.64 -0.40%

CAC 5,163.51 -13.10 -0.25%

DAX 12,248.63 -15.23 -0.12%

Crude $46.56 (-0.47%)

Gold $1,290.80 (+0.62%)

(company / ticker / price / change ($/%) / volume)

Walmart (WMT) reported Q2 FY 2018 earnings of $1.08 per share (versus $1.07 in Q2 FY 2017), beating analysts' consensus estimate of $1.07.

The company's quarterly revenues amounted to $121.949 bln (+2.1% y/y), generally in-line analysts' consensus estimate of $121.858 bln.

WMT fell to $78.66 (-2.86%) in pre-market trading.

Cisco (CSCO) reported Q4 FY 2017 earnings of $0.61 per share (versus $0.63 in Q4 FY 2016), in-line with analysts' consensus estimate.

The company's quarterly revenues amounted to $12.133 bln (-4% y/y), generally in-line analysts' consensus estimate of $12.065 bln.

CSCO fell to $31.55 (-2.44%) in pre-market trading.

Equities extended this week's gains a bit further early Thursday as minutes of the Federal Reserve's meeting revealed a deeper-than-expected divide on the timing of the next interest rate increase. The prospect of a slower pace of additional rate increases pressured the dollar in Wednesday afternoon U.S. trading, and the subsequent gain in the yen weighed on Japanese stocks early Thursday.

European stocks pushed higher Wednesday, with stocks continuing to recover after the flare-up in tensions between the U.S. and North Korea and big exporters getting a boost from a weaker euro. The Stoxx Europe 600 index SXXP, +0.69% picked up 0.7% to close at 379.09, logging a third straight day of gains.

U.S. stocks closed moderately higher Wednesday, restoring the Dow above the psychologically-important 22,000 mark, after Federal Reserve minutes suggested that the central bank is wrestling with sluggish inflation but eager to commence an unwind of its $4.5 trillion asset portfolio.