The energy sector pared declines late in the session, while the substances led the way lower, dropping 1.91%. The utilities and telecommunications sectors finished in positive territory.
Apple Inc was the most active by share volume in NASDAQ. Apple Inc. (NASDAQ:AAPL) belongs to Consumer Goods sector. Its net profit margin is 22.60% and weekly performance is -0.56%. On last trading day company shares ended up $113.49. Apple Inc. (NASDAQ:AAPL) distance from 50-day simple moving average (SMA50) is -9.08%.
Brad McMillian, chief investment officer for Commonwealth Financial Network, said he considers the move by the Chinese central bank was intended as an indication of strength, but the remaining part of the marketplace, as well as he, finds it as weakness.
“China consistently had a reasonable long term method of policymaking. When it came to their money strategy they have consistently kept it at a consistent amount with no surprises, and managed it with long term interest. The fact they dropped this bombshell begs the question regarding why,” McMillian said.
He described China probably needed to be viewed as “in charge” of the marketplace, particularly following the botched reaction to the drop in its stock market last month, and the country is worried about economic growth to a point they are taking serious actions together with the anticipation the downside risk is going to be worth it in the end.
Chinese stocks were largely level after the move of the central bank. Against the yuan, the greenback rose 1.86% to 6.33. Meanwhile, the return on the benchmark 10-year U.S. Treasury dropped 0.117 of a percentage point to 2.121%. After jumping in the previous session, U.S. crude oil dropped 4.18%to $43.08, settling at its lowest level in almost 6-1/2 years. Meanwhile Brent, the global standard, fell 3.07% to $48.86.
European marketplaces followed Asia lower as dealers there split focus between the money moves in China as well as a looming deal between Greece and its own lenders for its third financial aid package. The Euro Stoxx 50, which monitors large cap businesses in the Eurozone, fell 1.90%. The German Dax slumped 2.68%, the French CAC 40 dropped 1.86%, while the UK’s FTSE 100 dropped 1.06%.
Greece said on Tuesday that after 23 hours of discussion, it reached a deal for a multi-billion euro bailout with its international lenders.
Meanwhile, back in the U.S., dealers are digesting a slew of corporate news headlines including Monday night’s surprise statement from Google Inc (NASDAQ:GOOGL). The Internet search giant said it created a new parent company named Alphabet which will place a range of Google’s non-search companies including Nest, Google Ventures, and Google X. Alphabet will replace Google as the freely-traded thing, but the tickers will stay the same. Google Inc (NASDAQ:GOOGL) belongs to Technology sector. Its net profit margin is 20.80% and weekly performance is 4.39%. On last trading day company shares ended up $690.30. Google Inc (NASDAQ:GOOGL) distance from 50-day simple moving average (SMA50) is 16.22%.
Fed comments from the central bank’s No. 2 guy, Stanley Fischer, drove large increases in the previous session, and dealers continue to look to economic data for hints as to when the central bank will start to raise short term interest rates.
However, Barclays analysts said it seemed as many of its own members talk ahead of the September meeting, the Fed is working to keep marketplace expectations for a rate increase in check.
The economic data calendar was thin Tuesday with just a few of reports for dealers in the U.S. to digest. The Labor Department said non-farm productivity also rallied in the 2nd quarter, but the first quarter result was revised lower, reviving concerns inflation could pick up more rapidly than anticipated.
Symantec Corporation (NASDAQ:SYMC) said it intends to sell its data storage unit to private equity group Carlyle for $8 billion. The statement came in the antivirus software company’s second quarter results that were due out after the close of commerce. Symantec Corporation (NASDAQ:SYMC) shares fell -6.85% in last trading session and ended the day at $21.34. SYMC Gross Margin is 82.30% and its return on assets is 6.70%. Symantec Corporation (NASDAQ:SYMC) quarterly performance is -14.58%.