US stocks drop in the early session

FXStreet (Mumbai) – The sentiment on the Wall Street has turned slightly risk averse after the report showed the economy picked up pace in the second quarter, increasing the prospects of a rate hike in the US.

The S&P 500 fell 0.58% to 2096.30 and the DJIA dropped 0.54% to 17,655.50. The NASDAQ 100 index fell 0.61% to 4553.82.

Among Dow Jones stocks, United Technologies had edged up 0.89%, followed by a 0.72% rise in Intel. The losing side includes Procter&Gamble; down 4.13%. UnitedHealth is down 1.09%.

Companies scheduled to report during the day include Mondelez International before the bell and Expedia , LinkedIn and Western Union after the close. According to StarMine data, the S&P 500 is trading near 16.9 times forward 12-month earnings, above the 10-year median of 14.7 times.

The GDP report released earlier today showed the economy expanded 2.3% in Q2. The Q1 GDP was revised higher to 0.6% from -0.2%. Other data showed the initial jobless claims stayed below 300K for the 21st consecutive week.

The sentiment on the Wall Street has turned slightly risk averse after the report showed the economy picked up pace in the second quarter, increasing the prospects of a rate hike in the US.

(Market News Provided by FXstreet)