US stocks recorded gains yesterday in a shortened session before countrys national holiday. Investors analyzed better-than-expected jobs data news mixed with political shakes in Portugal ahead of a key jobs report Friday.
The Dow Jones Industrial Average gained 56.14 points, which is 0.4%, to 14988.55 in a shortened session that closed at 1 p.m. EDT ahead of todays Independence Day holiday. Stock trading is set to re-open on Friday. The Standard & Poors 500-stock index grew 1.33 point, or 0.1%, to 1615.41. The Nasdaq Composite Index climbed 10.27 points, or 0.3%, to 3443.67.
“Today was kind of slow. I dont think people are putting a lot of exposure on going into the holiday, especially because the job number is on Friday,” said Omar Aguilar, chief investment officer of equities at Charles Schwab Investment Management. “Theres a lot of uncertainty in Europe, with whats going on in Portugal, as well as in Egypt.” he added for The Wall Street Journal.
German stocks index DAX declined after Portugal’s government lost the leader of its junior coalition partner, bringing concern that the country will cease its attempts to cut spending. The DAX benchmark lost 1% to 7,829.32 at the close in Frankfurt. The gauge has lost 8.2% since May 22, when the Federal Reserve signaled that it may start to pare stimulus if the U.S. economy strengthens in line with its forecasts.
“After the fears about the Fed tapering stimulus and China growth, the focus is back on Europe,” said Markus Wallner, an equity strategist at Commerzbank AG in Frankfurt. “We clearly see that with the spread, particularly in Portugal. The theme is back to the euro crisis. Sentiment is very negative due to too many uncertainties.” he said cited by Bloomberg.
European markets sank, with the Stoxx Europe 600 retreating 0.6%. Portugals PSI 20 index slid 5.3%, after Portuguese Foreign Minister Paulo Portas resigned late Tuesday, a day after Finance Minister Vitor Gaspar quit. The quick departures of countrys politics raised concerns about Portugal commitment to austerity measures made to secure a bailout.
In US corporate news, Mead Johnson Nutrition declined 8.1% after Wells Fargo and Goldman Sachs lowered their ratings on the company, following reports that China is investigating foreign makers of baby formula for possible price fixing and anti-competitive activity.
In the European corporate arena Adidas sank 2.2% to 81.95 euros after Deutsche Bank cut the stock to “neutral” rating, the equivalent of “hold”, from “buy”. Deutsche Bank AG was down to its 10 week lowest after S&P downgraded the lender’s credit rating.
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