Dow drops more than 100 points on fears of a less aggressive Fed next week, Facebook falls; European markets close lower after Draghi’s mixed message on stimulus
Stocks fell on Thursday as investors worried that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week following strong economic data and remarks from the top European Central Bank official. The Dow Jones Industrial Average closed 128.99 points lower, or 0.5%, at 27,140.98. The S&P 500 also pulled back 0.5% to close at 3,003.67. The Nasdaq Composite lagged, sliding 1% to 8,238.54. Both the S&P 500 and Nasdaq hit record highs in the previous session.
Facebook shares fell 1.9%, giving up earlier gains. CFO David Wehner said in a conference call Wednesday evening that the company expects revenue to fall “sequentially” going forward. “We also expect more pronounced deceleration in the fourth quarter and into 2020, partially driven by ad-targeting related headwinds and uncertainties,” he said. Wehner’s comments overshadowed stronger-than-expected results for the second quarter.
Ford shares slid 7.5% after its earnings fell short of estimates and its 2019 guidance disappointed investors. Boeing shares were battered again after reporting in the previous session a massive quarterly loss. Boeing dropped 3.7% after sliding 3.1% in Wednesday.
Tesla plunged 13.6% after the electric car maker reported a bigger-than-expected loss for the previous quarter.
European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon. The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory. The ECB prepared markets for more easing measures on Thursday, causing the euro to briefly fall to a two-year low against the dollar, also sending shares higher.
Average salary in Serbia in May RSD 55,380
Average gross salaries and wages calculated for May 2019 amounted to RSD 76,511, while average net salaries and wages amounted to RSD 55,380, the Statistical Office of the Republic of Serbia announced today. Increase of gross salaries and wages in the period January – May 2019, relative to the same period last year, amounted to 9.7% in nominal terms, i.e. 7% in real terms. Simultaneously, net salaries and wages increased by 9.9% in nominal terms and by 7.2% in real terms.
Dinar savings hit record high in July, exceed 70 bln
Dinar savings in Serbian banks have reached new record levels, exceeding 70 bln dinars in July 2019 for the first time, according to figures released by the National Bank of Serbia (NBS). "Owing to the achieved macroeconomic stability and increasingly better prospects for the development of the domestic economy, the citizens’ trust in the domestic currency has been growing year after year. This is also confirmed by the fact that dinar savings rose by more than three times as at June 2019 compared to June 2013. The upward trend accelerated particularly in the past two years - from the start of 2018 alone, dinar savings increased by almost 40 pct and are continuing to grow.
Fiscal Council: Growth estimates too ambitious, NBS artificially keeps Dinar strong
Serbian Fiscal Council member Vladimir Vuckovic told the Thursday issue of Belgrade weekly Vreme that estimates of a 3.5 percent growth this year are too ambitious. He said the economy would grow by about three percent in 2019. The Dinar is relatively stable, growing slightly stronger, but the recommendation is for it to grow a little weaker every year to keep our prices competitive, he said and added that the National Bank of Serbia (NBS) should keep the value of the Dinar low artificially.