US: Stocks retreat ahead of Fed decision, big tech earnings
Representatives from Beijing and Washington signaled further talks were likely following a round of negotiations in Stockholm. But a top US trade official stressed that President Donald Trump would make any 'final call.'
Meanwhile investors digested several significant earnings reports, as well as merger announcements in the rail and energy sectors ahead of major economic news catalysts later in the week.
'After reaching all time highs, markets are going to take a wait and see attitude,' said Art Hogan of B. Riley Wealth Management.
The Dow Jones Industrial Average finished down 0.5 per cent at 44,632.99.
The broad-based S&P 500 shed 0.3 per cent to 6,370.86, while the tech-rich Nasdaq Composite Index declined 0.4 per cent to 21,098.29.
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Both the S&P 500 and Nasdaq had finished at records on Monday.
Steve Sosnick of Interactive Brokers described Tuesday's activity as a 'little bit of position squaring ahead of a potentially very volatile few days.'
Besides earnings from Apple, Facebook parent Meta and other tech giants, markets will absorb a Federal Reserve interest rate decision.
The central bank is expected to keep rates unchanged, but could hint that an interest rate cut will be more likely in September. Trump has lambasted Fed Chair Jerome Powell for not cutting interest rates.
The market will also receive key economic reports on the labor market, inflation and US growth.
Among companies reporting earnings on Tuesday, Boeing dropped 4.3 per cent, UnitedHealth Group sank 7.4 per cent and Whirlpool dived 13.4 per cent
Union Pacific announced it will be acquiring Norfolk Southern for US$85 billion, creating a transcontinental railroad intended to boost freight rail efficiency.
Union Pacific fell 2.3 per cent while Norfolk Southern fell 3.0 per cent. Analysts expect the deal to encounter regulatory scrutiny.
Oil services company Baker Hughes said it would acquire Chart Industries for US$13.6 billion, adding assets in natural gas, data centres and decarbonisation.
Baker Hughes dropped 1.7 per cent while Chart surged 15.8 per cent.
CyberArk Software surged 13.5 per cent following a report it was in talks to be acquired by Palo Alto Networks in a merger of cybersecurity ventures. Palo Alto fell 5.2 per cent. AFP
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Business Times
13 minutes ago
- Business Times
US dollar tumbles;traders bet on more US rate cuts after weak jobs report
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Business Times
43 minutes ago
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3 hours ago
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Director transactions Over the five trading sessions, more than 40 director interests and substantial shareholdings were filed. Across 25 primary-listed stocks, directors or CEOs filed seven acquisitions and five disposals, while substantial shareholders recorded five acquisitions and three disposals. This included director or CEO acquisitions in iWow Technology , Japan Foods Holding , Jason Marine Group , Micro-Mechanics (Holdings) , Stamford Land Corp and SunMoon Food Company . Share buybacks and director filings remained below typical levels, as the local market remained in a busy stretch of financial reporting. iWow Technology On Jul 25, iWow Technology's lead independent director Ang Swee Tian acquired 111,100 shares at S$0.188 apiece. This took his direct interest to 0.04 per cent. The past president of Singapore Exchange and the former Singapore International Monetary Exchange also currently serves as the lead independent director of Zheneng Jinjiang Environment Holding Company. The name iWow is an acronym for 'Inspiring the World Of Wireless'. The provider of integrated wireless Internet of Things and telecommunications infrastructure solutions delivers end-to-end services from hardware/software design to connectivity and operations. Its competitive edge lies in turnkey capabilities, enabling full-scale deployments through in-house research and development (R&D), proven manufacturing, and robust infrastructure. The group has been strengthening its core growth pillars with continued investment in scalable R&D. Following the success of the Buddy of Parents (BOP) Button introduced by its wholly owned subsidiary BOP Pte Ltd, the group has expanded its suite of agetech – hardware and software to address challenges of old age – with BOP Presence and BOP Monitor, while enhancing its electronic monitoring solutions for regional compatibility. As reported by The Business Times in May, the BOP Button is a wall-mounted emergency device designed for seniors living alone or without full-time care. With one press, it connects them to a 24/7 response centre. In June, the group also announced that BOP Pte Ltd had won the prestigious DBS Foundation Impact Beyond Award, securing a S$1 million grant to advance innovation in agetech and support seniors in ageing well at home. Japan Foods Holding On Jul 24, Japan Foods Holding non-executive vice-chairman Eugene Wong acquired 60,000 shares at S$0.19 apiece. This increased his total interest from 5.63 per cent to 5.66 per cent. His preceding acquisition was on Jun 24, with 38,000 shares acquired at S$0.26 per share. Japan Foods Holding is one of the leading Japanese restaurant chains in Singapore. Its franchised brands include Ajisen Ramen, Kageyama and Konjiki Hototogisu. The group currently sees Singapore's food and beverage sector shifting from expansion to profit recovery, thus prompting tighter monitoring of outlet performance and a focus on innovation and consumer needs. It has also been actively identifying and extending brands that enjoy greater customer loyalty and have stronger identity than others, while pruning any underperforming brand that may be draining resources. In addition, Wong acquired 9,900 shares in Jason Marine Group at S$0.15 apiece on Jul 24, where he also serves as deputy non-executive chairman. Stamford Land Corp Stamford Land Corp executive chairman Ow Chio Kiat bought 35,000 shares at S$0.435 each. This followed his acquisition of 41,000 shares over the preceding week. He maintains a total interest of 46.18 per cent in the independent owner-operator of luxury hotels in Australia and established real estate developer and investor. The writer is the market strategist at Singapore Exchange (SGX). To read SGX's market research reports, visit
