This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
With under an hour to go to the close in New York, the Dow was trading down 0.42% or 61 points at 15,437, with Alcoa its sole gaining component. The S&P 500 (-0.26%) and the NASDAQ 100 (0.14%) also held on to their losses in low-volume trading.
With earnings season now petering out, there has been little news with any sparkle to draw money into the stock market. The main talking point this week has been a succession of officials from the Fed making suggestions that tapering could be at hand. Although this voicing of support for early tapering does beg the question of why the last FOMC statement offered no indications in that regard whatsoever, the lack of uncertainty over the issue has helped knock share prices lower this week.
The main piece of US macro news today was the surprise drop in inventory levels at wholesalers. The 0.2% drop seen in June may suggest the existence of a certain amount of caution about the prospects for the economy. Sales rose 0.4%, taking the inventory-to-sales ratio down to a slim 1.17 from 1.18 in May. It will be interesting to see if inventory data for the retail sector follows suit when the report for June is released next Tuesday.