• Major US stock indices showed mixed dynamics

Market news

1 May 2017

Major US stock indices showed mixed dynamics

Stock indexes S & P and Nasdaq finished the session with a rise on the background of growth of technological stocks, while the Dow index slightly decreased.

April data showed a steady increase in manufacturing activity in the US, but the growth rate slowed from the 22-month peak recorded in January. The slower growth in production volumes largely reflected the more restrained growth rate of new orders in April. The number of employees continued to increase in the manufacturing sector due to efforts to increase production capacity. However, recent data suggest that producers sought to reduce their reserves, which led to the end of the 6-month period of growth in inventories. Meanwhile, price pressures intensified, with prices rising at the fastest pace for just over 2.5 years. The seasonally adjusted final PMI for the manufacturing sector from Markit in the US (PMI) was 52.8 in April, compared to 53.3 in March, and signaled the slowest growth in activity since September 2016.

At the same time, the report published by the Institute for Supply Management (ISM) showed that in April, activity in the US manufacturing sector deteriorated more than forecast. The PMI index for the manufacturing sector was 54.8 points against 57.2 points in March. Analysts had expected the figure to drop to 56.4.

In addition, the US Department of Commerce reported that spending on construction projects declined slightly in March after reaching a record high in February. According to the data, construction costs decreased by 0.2% (seasonally adjusted). Economists forecast an increase of 0.4%.

Most components of the DOW index finished trading in positive territory (17 out of 30). Leader of growth were shares of Apple Inc. (AAPL, + 2.45%). More fell shares The Boeing Company (BA, -1.16%).

Most sectors of the S & P index recorded an increase. The leader of growth was the technological sector (+ 0.6%). The utilities sector fell most of all (-0.3%).

At closing:

DJIA -0.11% 20,916.75 -23.76

Nasdaq + 0.73% 6.091.60 +43.99

S & P + 0.17% 2,388.33 +4.13

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