NASDAQ rebounds, but stock market remains flat
The NASDAQ Composite led all major indices Monday, reversing a week-long downward trend that saw it fall off record highs. The NASDAQ advanced more than a quarter percent to 3,669.95 on a broad rally by the technology sector. Apple, Inc. advanced more than 2.8 percent to $467.36 a share after winning a patent-infringement case against Samsung. Blackberry Ltd., which has seen its shares fall more than 16 percent year-to-date, soared almost 10.5 percent after the company’s board hinted at a possible sale.
The NASDAQ followed the other major US indices to the bottom last week on growing Fed speculation, which was fueled by better-than-expected data on trade and services. Regional Fed Bank presidents Richard Fisher (Dallas), Charles Evans (Chicago) and Dennis Lockhart (Atlanta) all warned investors the end of government bond buying was near. The NASDAQ declined almost 0.9 percent last week on central bank speculation.
Despite the NASDAQ’s early-week rebound, the other major gauges failed to register growth. The Standard and Poor’s 500 fell for its fifth consecutive session, losing 0.12 percent to close at 1,689.47. The Dow Jones Industrial Average declined marginally to 15,419.70, a loss of 0.04 percent. Tesla Motors Inc. and Sysco Corp incurred some of the heaviest losses, falling 2.8 percent and 3.7 percent, respectively.
The stock market fluctuated after investors reacted to weaker-than-expected second quarter growth in Japan. According to the Cabinet Office of Japan, second quarter GDP advanced only 2.6 percent, versus 3.8 percent the previous quarter. Second quarter growth fell well below economists’ forecast of 3.6 percent.
US markets consolidated lower as investors braced for Tuesday’s data on retail sales, which are expected to be slightly less robust than the previous month. Bloomberg economists expect a July reading of 0.3 percent. Later in the week the United States is to produce official data on jobless claims and the Consumer Price Index, two key gauges of the US Federal Reserve.
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