The US stock market review

The stock indices dropped according to the trading results on Thursday amid discrepant data. Dow Jones Industrial Average index decreased by 30.72 points, or by 0.29%, to 10467.16 points. Nasdaq Composite fell by 12.87 points, or by 0.57%, to 2251.69 points. Standard & Poor’s 500 index edged down by 4.60 points, or by 0.42%, to 1101.53 points.

The index was pressured by the consumer sector companies. Kraft Foods shares ticked down by 61 cents, or by 2.1%, to $29.11, while Procter & Gamble tumbled by $1.03, or by 1.6%, to $61.67. Prices dropped after disappointing reports on profit of other consumer companies, including Kellogg and Colgate-Palmolive.

Kellogg shares declined by $3.54, or by 6.9%, to $47.98 after the company had announced that its revenue lowered by 15% in Q2 amid the reduction in sales of cereals in the USA and the UK. The sales did not match the expert expectations and the company lowered its forecast on shares growth for 2010.

Colgate-Palmolive shares fell by $5.74, or by 6.8%, to $78.12. The company’s profit rose by 7.3% in Q2, but sales did not come in line with analysts’ expectations and the company warned that Venezuela currency devaluation would bring damage to profit in 2010 more than it was expected before.

Merck securities increased by 32 cents, or by 0.9%, to $35.06. Chevron shares went up by 46 cents, or by 0.6%, to $76.02. Investors were optimistic ahead the release of quarterly profit reports on Friday.

The stock indices decline followed their fluctuation between positive and negative territories during Thursday’s session as investors are breaking between conflicting signals of profit reports and economic data. The US initial jobless claims report was released on Thursday. The claims slightly went down on the previous week, but showed significant growth in the previous period, having signaled that there was no improvement on the labor market. Meanwhile, the Kansas City FRB industrial activity slightly increased in July, but the expectations of payroll growth continued to go down.

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