US Market falls on profit taking

The US stock market finished session slight lower on Tuesday, 09 November 2021, as investors opted to book profit after recent strength in the markets and as a solid rise in producer prices last month deepened concerns over inflation. The Nasdaq and the S&P 500 moved lower after closing higher for eleven and eight consecutive sessions, respectively.

At the close of trade, the Dow Jones Industrial Average index declined 112.24 points, or 0.31%, to 36,391.98. The S&P500 index dropped 16.45 points, or 0.35%, to 4,685.25. The tech-heavy Nasdaq Composite Index fell 95.81 points, or 0.6%, to 15,886.54.

Total volume turnover on U.S. exchanges stood at 10.17 billion shares. Declining stocks outnumbered advancing ones on the NYSE exchange by 1567 to 1496 and 1747 closed unchanged. In the NASDAQ, 1919 issues advanced, 2686 issues declined, and 244 issues unchanged.

Total 5 of 11 S&P500 sectors ended down, with consumer discretionary (down 1.35%) was bottom performing issue followed by financials (down 0.55%) and information technology (down 0.43%) issues. Utilities (up 0.43%) was top performing sector, followed by materials (up 0.42%), and energy (up 0.4%) sectors.

Shares in Tesla fell 12% on plans by the CEO to sell stock. But shares in General Electric rose by 2.7% on plans to split into three companies.

ECONOMIC NEWS: US Producer Prices Advance 0.6% In October- US Labor Department said its producer price index for final demand advanced by 0.6% in October after climbing by 0.5% in September. The slightly stronger than expected producer price growth was partly due to a continued surge in energy prices, which spiked by 4.8% in October after jumping by 2.8% in September. Core producer prices, which exclude prices for food, energy, and trade services, rose by 0.4% in October after inching up by 0.1% in September. Core prices were expected to edge up by 0.2%. The report showed prices for transportation and warehousing services shot up by 1.7% in October after plunging by 4.0% in September. Compared to the same month a year ago, producer prices in October were up by 8.6%, unchanged from the previous month.

Among Indian ADR, Tata Motors fell 1.38% to $33.61, WNS Holdings fell 1.1% to $87.80, INFOSYS dropped 0.6% to $23.30, Dr Reddys Labs fell 0.26% to $64.66, and Wipro dropped 1.3% to $9.08. ICICI Bank added 0.33% to $21.11 and HDFC Bank added 0.18% to $72.11. Vedanta closed steady at $16.50.

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