At the end of Wednesday, two of the three major US stock indexes rose on statistical data and got better than expected quarterly results of high-tech companies, according to Bloomberg.
One of the main factors which caused the fall for third, which is Dow Jones Industrial Average, was a sharp fall in the value of Walt Disney shares (by 9.2%) on the disappointing data on revenue in the 2nd quarter.
Dow Jones Industrial Average index fell 10.22 points (0.06%) to 17 540.47 points. Standard & Poor's 500 rose 6.52 points (0.31%) to 2099.84 points. Nasdaq Composite added 34.40 points (0.67%) and amounted to 5139.94 points.
The index of business activity in the US service sector (ISM Non-Manufacturing) in July rose from 56 to 60.3 points, the highest level since August 2005. Analysts surveyed by Bloomberg expected a less significant increase of the index: to 56.2 points. The index exceeding 50 points indicates growth of business activity in the services sector, while the index below 50 indicates its decline.
According to ADP report, the number of jobs in the US in July rose by 185 thousand. Experts forecasted an average increase of 215 thousand. The official data of Ministry of Labor will be announced on Friday. It is expected that the increase in jobs in July amounted to 225 thousand against 223 thousand in June, and the unemployment rate remained at 5.3%.
In addition, as it became known from the Ministry of Trade report, the US external deficit in June increased by 7.1%, up to three months maximum of $ 43.8 billion. The experts have forecasted a growth rate at $ 43 billion.
Positive data reinforce market participants’ opinion that the Federal Reserve may raise interest rates in September.
Approximately 80% of the companies included in Standard & Poor's 500 have already published their quarterly reports, and about 75% of them exceeded the forecasts in terms of profits. According to Wall Street experts, profits of S&P 500 companies fell by an average 2.8%, whereas in early July the index was expected to fall 6.4%.
Shares of the largest manufacturer of solar panels in the US, First Solar, jumped 12% as the company's revenue and profit in the last quarter exceeded forecasts.
Share price of Cognizant Solutions Corp rose 6.4%, also due to positive statements.
Priceline Group Inc. prices rose 5.2% amid strong financial indicators of online-booking travel service in April-June this year.
Apple Inc (NASDAQ: AAPL) shares rose for the first time in six sessions by 0.7%.
Shares of video game developer, Electronic Arts Inc. (NASDAQ: EA), rose 4.7% to a historic high.