• Major US stock indexes finished trading in negative territory

Market news

18 April 2017

Major US stock indexes finished trading in negative territory

Major US stock indexes declined on Tuesday, as corporate heavyweights Goldman Sachs and Johnson & Johnson disappoint investors with their quarterly results, while geopolitical tensions continued to affect the sentiment of market participants.

In addition, as it became known, in March, US housing construction fell, as the construction of single-family houses in the Midwest recorded the largest decline in three years, probably due to bad weather. The laying of new houses fell by 6.8% to an annual rate of 1.22 million units, the Commerce Ministry said on Tuesday. The laying of new homes for February was revised to 1.30 million units from the previously reported 1.29 million units.

At the same time, the demand for heating increased industrial production in March. The Federal Reserve said that industrial production rose by 0.5% in March, with the increase attributable to record growth in the volume of public utilities. The release of utility services in March rose by a record 8.6%, as colder temperatures returned after warm weather in the first two months of the year, the Fed said.

Quotes of oil moderately decreased, reaching a 2-week low, which was due to news that the volume of oil shale in the US is likely to increase sharply in May. According to the forecasts of the US Energy Ministry, the production of shale oil in the fields of the largest oil and gas producing regions of the USA in May will grow by 124 thousand barrels per day in comparison with April - up to 5.193 million barrels.

Components of the DOW index finished the session in different directions (16 in negative territory, 14 in positive territory). The Goldman Sachs Group, Inc. fell more than the rest. (GS, -4.72%). The leader of growth was shares UnitedHealth Group Incorporated (UNH, + 1.06%).

Most sectors of the S & P index showed a decline. The main materials sector fell most of all (-0.8%). The growth leader was the conglomerate sector (+ 0.4%).

At closing:

DJIA -0.55% 20,523.96 -112.96

Nasdaq -0.12% 5,849.47 -7.32

S & P -0.29% 2,342.22 -6.79

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