• Major US stock indexes finished trading in the "red zone"

Market news

17 January 2017

Major US stock indexes finished trading in the "red zone"

Major US stock indexes closed below zero amid falling shares of conglomerates sector and financial sphere after comments from Donald Trump on the US dollar and speech British Prime Minister Theresa May on the release of the UK plan from the EU structure.

Trump in an interview with Wall Street Journal noted that US companies can not compete with China, "because our currency is too strong. And it's killing us." In addition, Trump has spoken out against the proposed plan by Republicans in Congress on taxes for companies, known as the adjustment of customs duties. It is expected that the plan on the taxation of imports and tax incentives for exports will support the dollar. Overall, his comments led some investors to reconsider expectations for what Trump will soon be able to implement fiscal stimulus and tax cuts.

In addition, as it became known, business activity continued to modestly grow in New York, according to the companies answered in January 2017 in the Empire State Manufacturing Survey. General business conditions index slightly dropped to 6.5. The new orders index fell to 3.1, indicating a slight increase in orders and shipments index remained at 7.3. Inventories rose slightly for the first time in over a year. The conditions in the labor market remained weak, though smaller than in recent months. Manufacturers reported a slight decrease in employment and a number of shorter working weeks.

Meanwhile, investors continue to closely monitor the outgoing financial statements corporate segment. Recall, reports the largest banks on an optimistic note opened the season of quarterly reports in the US on Friday.

DOW index components ended the day mostly in negative territory (18 of 30). Outsider were shares of JPMorgan Chase & Co. (JPM, -3.83%). Most remaining shares increased Wal-Mart Stores, Inc. (WMT, + 2.00%).

Sector S & P index closed mostly in the red. conglomerates (-2.3%) sectors fell most. The leader turned utilities sector (+ 1.0%).

At the close:

Dow -0.28% 19,829.68 -56.05

Nasdaq -0.63% 5,538.73 -35.39

S & P -0.30% 2,267.83 -6.81

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