Pause Ahead of FOMC and Earnings Announcements... All Three Major Indices Fall [New York Stock Market Briefing]

The New York stock market declined as caution set in ahead of the Federal Reserve (Fed) policy rate decision and upcoming corporate earnings announcements.

On the 29th (local time), the Dow Jones Industrial Average ended trading at 44,632.99, down 204.57 points (0.46%) compared to the previous session at the New York Stock Exchange. The S&P500 closed down 18.91 points (0.30%) at 6,370.86. The NASDAQ Composite Index also ended the session down 80.29 points (0.38%) at 21,098.29.

The US Fed will hold a Federal Open Market Committee (FOMC) meeting from the 29th to the 30th to decide the policy rate. The majority expectation is for rates to remain on hold. On the 30th, Fed Chair Jerome Powell is scheduled to hold a press conference.

The economic indicators released on the day were mixed. The US Consumer Confidence Index (CCI), which gauges Americans' outlook on the economy, showed signs of recovery.

According to the Conference Board, a US private economic research group, the July Consumer Confidence Index stood at 97.2, up 2 points from the previous month (95.2). The July Expectations Index recorded 74.4, a 4.5-point increase from the previous month. However, this remained below the recession benchmark of 80.

The Present Situation Index for July was tallied at 131.5, a 1.5-point decline from the previous month. This indicator suggests that consumers have a negative evaluation of the current economic climate, job market, and business conditions.

In contrast, US job openings in June fell short of expectations. According to the Job Openings and Labor Turnover Survey (JOLTs) released by the US Department of Labor, job openings in the US for June stood at 7,437,000.

This was a decrease of 275,000 from the previous month (7,712,000) and also below expert projections (7,500,000). However, large-scale layoffs by companies have also decreased, with layoffs in June totaling 1,604,000, down 7,000 from the previous month.

By stock, UnitedHealth Group, Boeing, and Merck & Co., which reported earnings that day, all declined. UnitedHealth Group, a health insurance company, plunged by 7.46%.

Boeing posted a narrowed second-quarter loss, but shares dropped 4.37%. Merck & Co. fell 1.64% after announcing that the suspension of Gardasil HPV vaccine shipments to China would be extended at least until year-end.

Logistics company UPS, which downwardly revised its annual sales and margin outlook due to tariff concerns, plummeted 10.57%. Consumer goods company P&G declined 0.32% after revealing plans to raise some product prices to offset the impact of tariffs.

Noh Jeong-dong, Hankyung.com Reporter dong2@hankyung.com