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US stock market declined under pressure from tech stocks
Investors also evaluated the draft of a new package of measures to support the US economy in the amount of $ 1 trillion, which was presented on Monday by Senate Majority Leader Republican Mitch McConnell. The initiative, in particular, provides for a reduction in the size of the increment to unemployment benefits from $ 600 per week to $ 200 per week.
Democrats, in turn, are in favor of maintaining the size of the premium, writes MarketWatch. Analysts believe the payments helped cushion the blow from the coronavirus pandemic.
"For the stock to continue its gains yesterday, agreement must be reached by Friday, when the increased unemployment benefits are due," said JFD Group chief market analyst Haralambos Pissouros.
He also believes that a package of measures of about $ 1 trillion or less is likely to disappoint the market.
In addition, the focus of traders is the two-day meeting of the Federal Reserve System (FRS), which started on Tuesday, following which, as expected, the US Central Bank will confirm its commitment to keeping interest rates close to zero for a long time.
The Fed on Tuesday extended seven emergency lending programs by three months, until December 31, 2020, to support economic activity during the coronavirus pandemic.
Meanwhile, the consumer confidence index in the United States in July 2020 fell to 92.6 points from a revised 98.3 points in June, according to the research organization Conference Board, which calculates this indicator. Earlier the June value was estimated at 98.1 points.
Analysts polled by Trading Economics expected the index to drop to 94.5 points in July on average.
Amazon.com Inc. (SPB: AMZN) down 1.8%, Netflix Inc. (SPB: NFLX) - by 1.4%. Alphabet Inc. (SPB: GOOG) lost 1.7%, Facebook Inc. (SPB: FB) - 1.5%, Apple Inc. (SPB: AAPL) - 1.6%.
Pfizer Inc. Shares (SPB: PFE) gained 3.9%. The American pharmaceutical company in the second quarter reported a decrease in adjusted earnings to $ 0.78 from $ 0.8 per share, however, analysts polled by FactSet expected a larger decrease in the indicator - to $ 0.67 per share. In addition, Pfizer announced the beginning of a new phase of clinical trials of a coronavirus vaccine, which the company is developing in conjunction with Germany's BioNTech.
Raytheon Technologies Corp. decreased by 0.2%, despite the fact that the company's revenue in the second quarter jumped by 24% to $ 14.06 billion with the consensus forecast of experts at $ 13.46 billion.
McDonald's Corp. Quotes (SPB: MCD) dropped 2.5%. Adjusted profit for the fast food restaurant chain in April-June fell to $ 0.66 from $ 2.05 per share a year earlier and was below the consensus forecast of $ 0.74 per share.
3M Co. (SPB: MMM) fell 4.9%. According to the results of the second quarter, the company recorded a drop in adjusted earnings by 16% - to $ 1.78 per share, revenue - by 12%, to $ 7.18 billion. Analysts expected that the adjusted earnings would be $ 1.81 per share, revenue - $ 7 , 32 billion.