• Major US stock indexes finished trading mostly in the red

Market news

31 January 2017

Major US stock indexes finished trading mostly in the red

Major US stock indexes continued to fall on Tuesday, weighed down by a decrease in the technological and financial sectors, amid disappointing weak consumer confidence data.

The data from the Conference Board showed that consumer confidence indicator decreased moderately by the end of January, reaching 111.8 points (1985 = 100) compared to 113.3 points in December (revised from 113.7 points). Analysts predicted that the figure will be 113.0 points.

Market participants, who not so long ago pushed Wall Street to record highs on expectations of new financial incentives under the new administration, disappointed because of the insulating Trump policy, including restrictions on entry into the United States.

In addition, as it became known today, to compensate for the costs of civilian workers increased by 0.5%, seasonally adjusted, 3-month period ending in December 2016. US Bureau of Labor Statistics reported that the salary (which is about 70% reimbursement of expenses) increased by 0.5%, and bonuses (which make up the remaining 30% compensation) increased by 0.4%.

At the same time, house prices rose strongly in November, with the increase in prices did not show any signs of slowing down, even after mortgage rates began to rise during the month. House Price Index from the S & P / Case-Shiller, covering the whole country, increased by 5.6% in the 12 months ended in November, slightly above the revised growth of 5.5% compared to the previous year, which was reported in October.

Oil prices rose slightly, reacted to the news of a sharp reduction in OPEC oil production, as well as the weakening of the dollar across the board. Reuters survey showed that the volume of oil production by OPEC countries fell by more than 1 million. Barrels per day in January. Recall, the Organization of Petroleum Exporting Countries agreed to cut production by about 1.2 million. Barrels per day from January 1, to maintain prices and reduce oversupply.

DOW index components closed mostly in the red (22 of 30). Most remaining shares tumbled The Goldman Sachs Group, Inc. (GS, -1.87%). leaders of growth were shares of Pfizer Inc. (PFE, + 1.20%).

Almost all sectors of the S & P ended the session in negative territory. Most of the basic materials sector fell (-1.9%). The leader turned out to be the health sector (+ 2.0%).

At the close:

Dow -0.53% 19,864.94 -106.19

Nasdaq + 0.02% 5,614.79 +1.08

S & P -0.09% 2,278.91 -1.99

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