• Major US stock indexes showed a slight increase

Market news

1 February 2017

Major US stock indexes showed a slight increase

Major US stock indexes finished trading in positive territory thanks to optimistic statistical data on the US, and the reporting of a number of companies, including Apple Inc. At the same time, market participants drew attention to the outcome of the February meeting of the US Federal Reserve.

Data from Automatic Data Processing have shown that employment growth in the US private sector accelerated in January, more than expected. According to the report, in January, the number of employees increased by 246 thousand. People in comparison to the revised downward index for December at the level of 151 thousand. (Originally reported growth of 153 thousand.). Analysts had expected the number of people employed will increase by 165 thousand.

In addition, US producers signaled a strong start in 2017, while the growth of output and new orders accelerated since the end of last year. Improving the business environment is also reflected in the steady rise of the number and the payroll and the steepest increase in stocks of finished goods from the beginning of reference of the index in 2007. The seasonally adjusted PMI manufacturing index reached 55.0 in January, compared with 54.3 in December. The last reading was slightly less than the preliminary estimate of 55.1, and pointed to the fastest productivity growth since March 2015.

However, a report published by the Institute for Supply Management (ISM), showed that in January of activity in the US manufacturing sector has grown considerably, exceeding average forecasts of experts, and reaching the highest level since November, 2014. The PMI for the manufacturing was 56.0 points versus 54.7 points in December. Analysts had expected that this figure will rise to only 55.0 points.

As for the Fed meeting, CBA leaders unanimously voted to keep the federal funds rate by between 0.50% and 0.75%. Investors did not expect that the Fed will take any action, but hoped to get a signal with respect to the plans of the Central Bank to the next meeting. In a statement, the Fed said an improvement in the economy, and indicators of consumer confidence and trust companies. Also, the Fed noted that the risks for the most part the economic outlook are balanced. Central Bank representatives have promised to closely monitor the indicators of inflation, global economic and financial situation.

DOW index components ended the day mostly in negative territory (20 of 30). Most remaining shares fell Microsoft Corporation (MSFT, -1.70%). leaders of growth were shares of Apple Inc. (AAPL, + 6.87%).

Sector S & P Index showed mixed trends. The leader turned out to be the sector of consumer goods (+ 0.9%). Most utilities sector fell (-1.5%).

At the close:

Dow + 0.13% 19,889.05 +24.96

Nasdq + 0.50% 5,642.65 +27.86

S & P + 0.02% 2,279.43 +0.56

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