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US Share Prices on Defensive Ahead of Greenspan's Testimony

Strategic Insights

— 1 min read

US share prices took a downturn on Wednesday afternoon due to profit-taking and caution ahead of Federal Reserve Chairman Alan Greenspan's testimony before a Senate committee. Although analysts expect strong second-quarter profits, concerns about a consumer slowdown and increased competition in the technology sector are clouding the outlook for the second half of the year. The Wilshire 5000 index was down 97.84 at 13,951.41, and the Dow Industrials were down 28.64 at 10,711.28. The Nasdaq Composite was down 80.85 at 4,096.32.

Key Takeaways:

  • US share prices fell on Wednesday afternoon due to profit-taking and caution ahead of Greenspan's testimony.
  • Second-quarter profits are expected to be strong, but not as high as in the first quarter.
  • Concerns about a consumer slowdown and increased competition in the technology sector are clouding the outlook for the second half of the year.
  • The Wilshire 5000 index was down 97.84 at 13,951.41, and the Dow Industrials were down 28.64 at 10,711.28.
  • The Nasdaq Composite was down 80.85 at 4,096.32.
  • Intel and Microsoft both beat estimates, but took losses due to profit-taking and uncertainty over Microsoft's breakup.
  • IBM will report earnings after the close of trading on Wednesday.
  • A $31 billion US trade gap in May was largely overlooked by dealers.

Statistics:

  • The Wilshire 5000 index was down 97.84 at 13,951.41.
  • The Dow Industrials were down 28.64 at 10,711.28.
  • The Nasdaq Composite was down 80.85 at 4,096.32.
  • Second-quarter earnings are expected to be strong, but not as high as in the first quarter.
  • The US trade gap in May was $31 billion.
  • Intel's stock was down 1 5/8 at 141 3/8.
  • Microsoft's stock was down 4 3/8 at 74 1/8.

Sources:

  • PRNewswire, "U.S. Share Prices on Defensive Wednesday Afternoon" (July 19).

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