US stocks end deep in the red

Indices register first monthly loss since January of this year

U.S. stocks tumbled on this last day of July, Thursday, 31 July 2014 handing the S&P 500 and Dow industrials their first down month since January. The market place is still monitoring geopolitical issues. Economic data included Initial Claims, the Employment Cost Index, and the Chicago PMI report.

The blue-chip index closed down 317 points, or 1.9%, at 16,563. The Nasdaq fell 93.13 points or 2.09% at 4369.77. The S&P 500 fell 39.40 points, or 2%, to finish just below 1,931.

All ten sectors ended in the red led by energy, healthcare and industrial sectors.

The S&P 500 is still up 4.5% year-to-date and just 2.9% off its 24 July record close near 1,988. Meanwhile, the Dow stands 3.4% off its 16 July record close at 17,138.

The market place is still monitoring geopolitical issues. The European Union and U.S. this week have slapped new and harsher sanctions on Russia. Meantime, the Israel-Hamas conflict is not de-escalating. These matters will continue to be not far from the front burner of the market place in the near term.

Now, traders and investors await Friday's U.S. Labor Department employment report. The report is forecast to see a rise in non-farm payrolls of 230,000 in July versus up 288,000 in June.

In overnight news, the July consumer price index in the European Union rose 0.4%, year-on-year, and is the lowest reading since 2009. The June CPI came in at up 0.5%. These figures are well below the European Central Bank's target of 2.0% annual inflation in the EU.

Among economic data expected at Wall Street, the initial claims level increased to 302,000 from a downwardly revised 279,000 (from 284,000). The consensus expected the initial claims level to increase to 310,000. The Employment Cost Index increased 0.7% in Q2 2014, up from a 0.3% increase in the first quarter, while the consensus expected an increase of 0.4%.

Manufacturing activities in the Chicago region softened significantly in July as the Chicago PMI fell to 52.6 from 62.6 in June. The consensus expected a more modest decline to 61.8.

The technology sector suffered from broad pressure. Influential listings like Apple, Google, Facebook and Qualcomm lost between 2.6% and 3.1%, while chipmakers also tumbled. Notably, Micron plunged 6.1% amid cautious comments from Goldman Sachs.

Bullion prices ended lower at Comex on Thursday, 31 July 2014. Gold prices ended the U.S. day session lower and hit a five-week low. Some upbeat U.S. economic data released Thursday and the recently rallying U.S. dollar index that hit a six-month high this week were bearish weights on the gold and silver markets.

Gold for August delivery fell $13.60, or 1.1%, to settle at $1,281.30 an ounce for a 3.1% monthly drop in July. September silver shed 19 cents to $20.41 an ounce.

Crude-oil futures extended losses on Thursday, 31 July 2014 as bearish U.S. inventory data a day before sent the U.S. oil benchmark below the $100 a barrel mark.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September was down $2.10, or 2.1%, to end at $98.77 a barrel. Monthly losses for crude reached 5.6%, snapping a three-month winning streak.

Tomorrow's session will be full of economic data starting with the 8:30 ET release of the Nonfarm Payrolls report for July (consensus 220K). Personal Income/Spending (consensus 0.4%) data and Core PCE Prices (expected 0.2%) will also be reported at 8:30 ET, while the final reading of the Michigan Sentiment survey for July (consensus 82.0) will cross the wires at 9:55 ET. Finally, the July ISM Index (consensus 55.9) and June Construction Spending (expected 0.3%) will both be reported at 10:00 ET.

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