Stocks of United States Exchange opened a little lower on Tuesday, August 5, 2014, mainly because of a decline in the energy stocks. The index losses of Unites States stocks balanced the weak indexes of service sector China.

Standard & Poor’s 500 share index dropped down by 1.1 percent due to a reduction in the energy stocks. Moreover, the prices of crude oil crashed significantly as the political tensions in the region lowered down the demand.

Coming to the Dow Jones, the average fell down by 0.39 percent and came to 16,505.38 points with a reduction of 639 points. The S&P index saw a decline of 0.44 percent and came down to 1,930.5 with a decrease of 8.49 points. As far as the Nasdaq Composite is concerned, the points reduced by 0.45 percent and settled at 4,367.37 with a reduction of 19.52 points.

The shares of retailer Target (NYSE:TGT) decreased by 2.6 percent and came down to $59.10, as it lowered down its earnings estimates for the second quarter due to an increase in the promotional costs.

The demand for factory goods of United States increased significantly which gave rise to an increased number of orders being given to the board. Moreover, the growth rate in the services sector increased at the fastest pace in the last 8.5 years.

Wunderlich Securities’ chief market strategist, Art Hogan, while discussing the index of ISM (Institute of Supply Management) in a conference set up in the city of New York, said that United States should not be bothered by the softer economic data of China. He further commented that U.S. has performed extraordinarily in the factory orders category, and so it will not be fair to expect high demands in the nonmanufacturing sector as well.

The index of service purchase manager China was at 53.1, a fifteen month high, by the end of June. However, it decreased to 50 points by the end of July. It is pertinent to note here that it was the first time in almost 9 years that the index had seen such low numbers.

United States Bank Wealth Management’s chief equity strategist, Terry Sandven, said that the market is expecting favorable outcome from the current equity conditions. He further commented that the investors are likely to put their bets in the equity market as they do not have many other options available to them. The Dow Jones crashed by 0.28 percent and came down to 16,523.06 points with a decline of 46.22 points. The Standard and Poor’s 500 share index dropped down by 0.26 percent and reached to 1,934.02 points with a reduction of 4.97 points, whereas the Nasdaq Composite fell by 0.11 percent and came down to 4,379.12 with a reduction of 16.22 points.

Coming to the energy stocks, the share prices of GT Advanced Technologies (NASDAQ:GTAT), an LED maker company, increased by 5.8 percent and reached to $14.95 when the company posted higher margins for its recent fiscal quarter.

Coming to the stock prices of RetailMeNot (NASDAQ:SALE), on the last trading day, the company saw a decrease of 25.1 percent in its share prices when it missed its 2Q’s earnings estimates. The stocks settled at $18.96.

Get Free Updates and Stock Alerts!

*We only send one email per week