• Major US stock indexes completed the session in different directions

Market news

9 May 2017

Major US stock indexes completed the session in different directions

Major stock indexes finished trading without a single dynamics, as the growth of quotations of the services sector was compensated by losses of the conglomerate sector.

Comments were made by the representatives of the Federal Reserve. Kansas City Federal Reserve Bank President Esther George said that the gradual rate increase remains an appropriate strategy for the Fed. "I support the current monetary policy and I believe that the Federal Reserve managed to effectively achieve price stability," George said, adding that the Fed should close the balance by the end of the year. George also said that the US economy is probably stronger than the data show, and weak indicators on US GDP growth in the first quarter do not cause strong fears. Meanwhile, the president of the Federal Reserve Bank of Boston Rosengren said that it would be desirable for the Fed to start reducing the balance soon. "The Fed will probably need a policy of balance in the future. I am confident that the reduction of the balance will pass, as we hope, "said Rosengren, adding that reducing the balance is unlikely to have negative consequences.

In addition, as it became known, wholesalers in the US showed a modest growth in inventories at the end of the first quarter. Wholesale inventories increased seasonally by 0.2% in March compared to the previous month, the Ministry of Commerce said on Tuesday. Economists had expected a decrease of 0.1%. Meanwhile, sales were unchanged in March. The ratio of reserves to sales declined to 1.28 in March from 1.35 a year earlier.

At the same time, the survey of vacancies and turnover of labor (JOLTS) showed that in March the number of vacancies increased to 5.743 million. The indicator for February was revised to 5.682 million from 5.743 million. Analysts had expected the number of vacancies to drop to 5.670 million. The level of vacancies Amounted to 3.8%, unchanged from February.

Most components of the DOW index showed a decrease (18 of 30). The shares of Chevron Corporation fell more than others (CVX, -1.57%). Leader of the growth were shares of NIKE, Inc. (NKE, + 1.08%).

Most sectors of the S & P index finished trading in the red. The conglomerate sector fell most of all (-1.8%). The leader of growth was the service sector (+ 0.5%).

At closing:

DJIA -0.17% 20,975.78 -36.50

Nasdaq + 0.29% 6.120.59 + 17.93

S & P -0.10% 2,396.90 -2.48

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