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Market Update

S&P 500 Down 0.5%, U.S. Auto Makers July Sales Rise

Author: Nichole Harper
Last Update: 1:56 PM ET August 03 2015

1:55 PM New York City, New York – S&P 500 and Nasdaq indexes declined more than 0.5% on Wall Street after consumer spending growth slowed despite healthy increase in income in June. Auto makers reported stronger-than-expected sales in July. Benchmark index in Greece plunged 16%.

Market indexes on Wall Street took a dive after consumer spending growth cooled despite significant rise in personal income.

Personal income in June increased 0.4% and disposable personal income rose 0.5%. Personal consumption expenditure grew 0.2% in the month, the Department of Commerce reported.

Separately, the department said Construction spending in June increased 0.1% at annual rate of $1,064.6 billion from the revised May estimate of $1,063.5 billion and soared 12% from a year ago spending of $950.3 billion.

On Wall Street, Tollbooth Strategy Index edged up 8.61 to 10,838.48.

S&P 500 index fell 4.12 or 0.2% to 2,099.69 and the Nasdaq Composite Index slid 2.12 to 5,126.17.

Crude oil in New York dropped $1.13 to $45.99 a barrel and gold slipped $5 to $1,090.10 an ounce.

U.S. Movers

Ford Motor Company (F) gained 1.3% or 19 cents to $15.02 after the auto maker said U.S. Sales in July jumped 4.9% to 222,731 vehicles from 212,236 vehicles in a year ago month.

Passenger car sales in the month dropped 3.9% to 66,004 units, truck sales climbed 5.7% to 83,095 units and utilities sales surged 13.4% to 73,632 units. Sales in Lincoln surged 21.3% to 9,536 units.

SUV sales soared 11% to 67,282, delivering the best July sales results since 2005 and Escape sales jumped 10% to 29,253 vehicles sold, represented all-time July sales.

Fiat Chrysler Automobiles NV jumped 3.1% or 50 cents to $16.30 after the auto maker reported U.S. sales in July soared 6% to 178,027 units compared to 167,667 units in a year ago month and the group’s best July sales since 2005.

Fiat Chrysler added Jeep brand sales surged 23% to 73,216 units; the best July sales ever and Chrysler 200 sales climbed 85% to 15,108 units.

Sales in RAM brand in the month rose 1% to 38,157 units while Fiat brand sales plunged 15% to 3,235 units Dodge brand sales declined 13% to 37,649 units.

General Motors Company GM)) rose 21 cents to $31.72 after the passenger car maker said total U.S. vehicle sales in July climbed 6.4% to 272,512 units from 256,160 units in a year ago month.

GM said retail sales in the month soared 14% and 18% increase in Buick sales and pickup deliveries were up 51% while fleet deliveries in July were declined 20%.

Loews Corporation (L) dropped 2.4% or 93 cents to $37.19 after the property and casualty insurance company reported sales in the second-quarter ending in June dropped 4.4% to $3.43 billion form a year ago period.

Net income in the quarter climbed 46.5% to $170 million or 46 cents per diluted share compared to $116 million or 30 cents from the same quarter last year.

European Markets

Market indexes in Greece plunged 16% at close after collapsing 22% at the opening in the first ten minutes of trading. The market began trading for the first time after a five-week closure.

Banks, which make up 50% of the index, plunged sharply as the liquidity has nearly dried out of the financial system and customers are banned from sending money outside the country and daily withdrawals are restricted $66.

In London trading, FTSE 100 index slid 13.91 or 0.2% to 6,682.40 and in Frankfurt the DAX index increased 125.86 or 1.1% to 11,434.95.

In Paris, CAC 40 index gained 30.15 or 0.6% to 5,112.76.

Commerzbank AG jumped 3% to €12.14 after the Germany-based bank reported total revenues before loan loss provisions in the first-half ending in June soared 14% to €5.1 billion.

Net profit in the period more than doubled from a year ago to €646 million compared to €300 million and diluted earnings per share gained to €0.55 from €0.26.

Heineken N.V soared 5% to €75.35 after the Netherland-based brewing and selling of beer maker reported group revenues in the first-half ending in June climbed 7.2% to €10.93 billion or €10.20 billion in a year ago period.

Net profit in the period surged soared 80.7% from a year ago to €1.14 billion compared to €631 million and diluted earnings per share jumped to €1.59 from €1.34.

The company said beer volume in the first-half increased 1% to 98.2 million hectoliters and Heineken premium volume jumped 4.7% to 14.9 million hectoliters.

HSBC Holdings Plc gained 0.6% to 58 pence after the U.K.-based financial services provider said revenues in the first-quarter ending in June climbed 5.7% to $32.94 billion from $31.17 billion in a year ago period.

Net profit in the period slipped 1.3% from a year ago to $9.62 billion compared to $9.75 billion and diluted earnings per share decreased to 48 cents from 50 cents.

The bank agreed to sell its Brazilian unit to Banco Bradesco SA for about $5.2 billion and plans to reduce the annual costs by up to $5 billion and also set aside $1.3 billion to cover estimated currency rigging.

The bank said its plans to conclude on whether to move its global headquarters by the end of this year. The bank has been looking to move its global headquarter out of London, U.K. and may shift it to Hong Kong.

Asian Markets

Nikkei average and the yen eased and investors focused on latest earnings reports. Fuji Heavy Industries first-quarter sales surged 29% and Suzuki Motor lifted its annual sales and earnings outlook. Japan Tobacco said first-half sales were flat and net declined.

Stocks in Tokyo slipped and the yen was under pressure and investors focused on the latest batch of earnings.

The Nikkei 225 Stock Average slipped 37.13 or 0.2% to 20,548.11 and the broader Topix index edged up 0.08 to 1,659.60.

The yen eased to 124.06 against a dollar.

Suzuki Motor Corporation jumped 3.4% to 4,467.50 yen after the auto maker said net sales in the first-quarter ending in June climbed 8.8% to 772.85 billion yen from 710.40 billion yen in a year ago period.

Net income in the quarter declined 15.5% to 31.70 billion yen compared to 37.53 billion yen and diluted earnings per share slumped to 56.50 yen from 66.88 yen the same period a year ago.

For the first-half ending in September, Suzuki estimated net sales to jump 4.8% to 1.50 trillion yen and net income to increase 2% to 55 billion yen.

For the year, the auto maker forecasted net sales to advance 2.8% to 3.10 trillion yen and net income to soar 13.6% to 110 billion yen.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc