The US markets ended mostly in red on Tuesday. The modest weakness on markets may partly have reflected profit taking, as some traders looked to cash in on the strong gains posted last month. Overall trading activity remained somewhat subdued as traders continued to look ahead to Friday’s closely watched monthly jobs report. On the sectoral front, gold stocks turned in some of the market’s worst performances on the day, with a steep drop by the price of the precious metal weighing on the sector. With gold for December delivery tumbling $30.40 to $1,978.80 an ounce, the NYSE Arca Gold Bugs Index plunged by 3.3 percent. Airline stocks also showed a substantial move to the downside, resulting in a 2.4 percent nosedive by the NYSE Arca Airline Index. With the drop, the index fell to its lowest closing level in well over a month.
Steel, banking and biotechnology stocks also saw some weakness on the day, while networking and computer hardware stocks moved notably higher. On the economic data front, a report released by the Institute for Supply Management (ISM) showed US manufacturing activity contracted for the ninth consecutive month in July. The ISM said its manufacturing PMI crept up to 46.4 in July from 46.0 in June, but a reading below 50 continues to indicate contraction. Street had expected the index to inch up to 46.8. The Commerce Department also released a report showing construction spending rose by slightly less than expected in the month of June. A separate report released by the Labor Department showed job openings edged down 9.58 million in June from 9.62 million in May.
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