The US stock market finished session lower on Tuesday, 28 July 2020, as profit booking after weaker than expected earnings from some large companies and on caution before the outcome of talks between Republicans and Democrats on a second coronavirus aid package.
At closing bell, the Dow Jones Industrial Average declined 205.49 points, or 0.8%, at 26,379.28. The S&P 500 index shed 20.97 points, or 0.7%, to 3,218.44. The tech-heavy Nasdaq Composite Index lost 134.18 points, or 1.3%, to 10,402.09.
Senate Republicans' roughly $1 trillion coronavirus relief package was in focus, as negotiations kicked off with Democrats over another fiscal stimulus bill that comes amid recent economic data suggesting the U. S. economic recovery is stalling.
The GOP on Monday revealed the text of its initial fiscal relief plan, named the Health, Economic Assistance, Liability Protections, and Schools Act The $1 trillion package includes another round of $1,200 direct payments, a $60 billion expansion of small-business loans, and more than $100 billion for schools. Senate Republicans' spending plan came in far below the $3.5 trillion sought by House Speaker Nancy Pelosi. Experts expect a long negotiation process before a package is passed.
The proposal also came after expanded unemployment benefits expired, pulling a key lifeline from millions of jobless Americans as the coronavirus continues to wreak havoc on the economy.
The Federal Reserve also began a two-day policy meeting on Tuesday that's unlikely to result in much action, but is expected to see Chairman Jerome Powell underline a willingness to take further action to support the economy and maintain easy financial conditions. The Fed on Tuesday announced that its board of governors had decided to extend until the end of the year several emergency loan programs that had been set to expire on Sept. 30.
Meanwhile, the number of U. S. coronavirus cases rose to 4.29 million and the death toll hit 148,056. Texas became the fourth state with more than 400,000 cases, joining California, Florida and New York. On the vaccine front, Moderna Inc. kicked off its late-stage trial while Pfizer Inc and BioNTech entered late-stage trials of their candidates also.
Shares of 3M Co dropped 5.1% as the industrial conglomerate fell short of estimates on quarterly profit and revenue, hurt by a plunge in demand across its business units.
Shares of McDonald's Corp fell 2% after posting a bigger-than-expected drop in global same-store sales and missing profit expectations as it restaurants were shut due to the pandemic.
Pfizer Inc shares rose 3.1% after it raised its full-year forecast on strong demand for cancer drugs and blood thinners.
Among Indian ADR, ICICI Bank shed 2.94% to $9.56, and WNS Holdings shed 0.57% to $61.07, HDFC Bank fell 0.1% to $48.50, INFOSYS fell 0.71% to $12.58, and Vedanta declined 0.34% to $5.86, while Wipro added 1.26% to $4.02, Tata Motors added 6.63% to $7.24 and Dr Reddys Labs was up 1.55% to $54.48. Azure Power Global ended flat at $20.10.
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