US stocks mixed after strong GDP figures
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
NEW YORK - US stocks finished mixed on July 25 as traders contended with corporate earnings and economic data that came in far stronger than expected.
The world’s biggest economy surprised analysts by growing at an annualised rate of 2.8 per cent in the second quarter of the year - double the level seen between January and March, and well above economists’ estimates.
The Dow Jones Industrial Average closed up 0.2 per cent at 39,935.07, while the broad-based S&P 500 fell 0.5 per cent to close at 5,399.22.
The tech-rich Nasdaq Composite Index also finished the day in the red, declining by 0.9 per cent to 17,181.72.
“We had a strong economic report, so that helped boost investors’ enthusiasm,” Cresset Capital’s Jack Ablin told AFP. “But we also had some a mixed picture on the micro front.”
“We had some disappointments out of Ford, American Airlines, so I think that it’s creating perhaps a little tension in the market today,” he added.
Among individual stocks, US auto giant Ford fell by 18.4 per cent after missing earnings expectations, leading a sell-off in the sector that left General Motors and Stellantis down 5.1 per cent and 7.7 per cent, respectively.
There was some cause for optimism as well on July 25, with health care services provider Molina and digital workflow firm ServiceNow both finishing the day up, by 12.3 per cent and 13.4 per cent, respectively.
Investors’ attention is also firmly fixed on July 26 inflation data, which is sure to be closely scrutinised ahead of next week’s Federal Reserve interest rate decision. AFP