Stock Markets – U.S. Stock markets closed lower on stock trading Monday (1 / 8).
This influenced a deal to avoid default approaching and the economy shows signs of stagnation. Stock markets fell the day before Congress is expected to vote on Monday with the government, including cutting spending $ 2.4 trillion over 10 years. Deadline deal including raising the loan limit of the United States until midnight Tuesday.
“Market participants believe the debt limit would be raised, this will be a positive vote for the senate and the government but there are still skeptical,” said Chief Investment Officer LLC Hugh Johnson , as quoted from yahoofinance.com.
Health Care Sector And Defense Sector Will Be Subject Of US Budget Cuts
Stocks also fell after the Institute for Supply Management said U.S. manufacturing sector growth slowed over the past two years in July. The ISM report also followed a report from Asia and Europe. Health care sector and the defense will be the subject of budget cuts the United States if the agreement is not reached. The iShares Dow Jones U.S. aerospace and defense exchange traded fund fell 1.1% while the S & P’s Healthcare fell 1.7%.
Healthcare stocks fell after the Centers for Medicare and Medicaid Services states, would cut the nursing training facilities by 11%. Kindred Healthcare shares fell 30% and Skilled Healthcare fell more than 43%.
US Rating Will Decline
The Dow Jones fell 10.75 points, or 0.09% to as low as 12,132.49. The S & P 500 lost 5.34 points or 0.41% to as low as 1286.94. The Nasdaq fell 11.77 points, or 0.43% to as low as 2744.61. Shares traded with a wide range. Stock markets are moving rally began in Asia is affected there will be agreement on the debt. If policymakers approve a deal before Tuesday’s debt so the U.S. will avoid a default on debt. Although the default is not favored by many investors, but rating agencies will continue to decline in the United States that provide ratings of negative sentiment to the stock market.
United Health shares fell 3.2% to as low as U.S. $ 48.02 while Humana Inc. fell 3% to as low as U.S. $ 72.36 despite Humana reported second-quarter profits higher than expected. Pfizer shares to as low as U.S. $ 19.01. Meanwhile, stock trading volume of about 8.3 billion shares on the New York Stock Exchange, NYSE Amex and Nasdaq over the daily average of about 7.48 billion. – Stock Markets
