• Major US stock indexes finished trading in negative territory

Market news

30 January 2017

Major US stock indexes finished trading in negative territory

Major stock indexes in Wall Street closed in the red, as the decision of the President of Donald Trump to restrict entry and immigration to the United States from certain countries has caused uncertainty in the market. Thus, according to the presidential decree, the United States for 120 days suspend the refugee-hosting the program for 90 days and close the entrance for people from several countries with a predominantly Muslim population.

In addition, as it became known today, US consumer spending increased significantly in December, as households have purchased cars and a wide range of services amid rising wages, pointing to robust domestic demand, which could push the economy up to the more rapid growth in early 2017 of the year. The Commerce Department reported that consumer spending, which accounts for over two-thirds of US economic activity, rose 0.5% after growth of 0.2% in November. Economists forecast that consumer spending will grow by 0.5% last month. Consumer spending increased by 3.8% in 2016 after rising by 3.5% in 2015.

However, data provided by the Federal Reserve Bank of Dallas, showed that business activity Texas manufacturers rose again in January, registering the fifth consecutive monthly increase. According to the report, the Dallas Fed manufacturing index in January rose to 22.1 points from 17.7 points in December (revised from 15.5 points). Economists had expected the index to fall to 15.0 points. Recall index value above zero indicates growth in business activity.

Oil prices declined by about 1% as the news about the next increase in drilling activity in the US overshadowed the optimism of market participants regarding the conditions of production by OPEC reduction agreement. On Friday, Baker Hughes reported that according to the results ended Jan. 27 working weeks in the number of US rigs increased by 18 units to 712 units. The annualized figure rose to 93 pieces, or 15%.

DOW index components closed mostly in the red (24 of 30). Most remaining shares fell Caterpillar Inc. (CAT, -2.29%). Leaders of growth were shares of The Walt Disney Company (DIS, + 1.24%).

All business sectors S & P index finished trading in the red. Сonglomeratessectors fell most (-2.1%) .

At the close:

Dow -0.57% 19,970.03 -114.33

Nasdaq -0.83% 5,613.71 -47.07

S & P -0.55% 2,280.75 -12.61

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