• The main US stock indexes completed the session in a positive territory

Market news

23 May 2017

The main US stock indexes completed the session in a positive territory

The main US stock indexes finished trading near zero, weighed down by mixed economic data. Investors also expected more detailed information from the first full budget of President Donald Trump, aimed at reducing government spending.

In addition, the preliminary composite PMI index from IHS Markit in the US, seasonally adjusted, showed a modest growth in business activity in the private sector in May. The index rose to 53.9, compared with 53.2 in April, indicating the strongest rise in the private sector in the US since February. The faster growth in business activity was due to the services sector (preliminary index was 54.0 in May), which more than offset the weakest production growth since September 2016 (preliminary index was 53.3).

At the same time, it became known that sales of new buildings decreased in April, as builders slowed down after the March surge, which became the strongest in the last ten years. Sales of new homes amounted to 569 000 in view of seasonal fluctuations, the Ministry of Commerce said on Tuesday. This was well below the consensus forecast at an annual rate of 610,000, but was offset by a sharp revision of the data for the previous months.

Oil prices have risen moderately, as hopes for an extension of OPEC's agreement to reduce oil production offset the negative from the White House's offer to sell half of the country's strategic oil reserves. According to the information received, Trump's budget plan involves the gradual sale of half of the US strategic oil reserves, as well as the expansion of drilling in Alaska. However, this version of the budget plan has not yet been approved in Congress.

Most components of the DOW index in positive territory (19 out of 30). More shares fell The Home Depot, Inc. (HD, -0.66%). The leader of growth is the shares of The Goldman Sachs Group, Inc. (GS, + 1.69%).

Most sectors of the S & P index in positive territory. The conglomerate sector fell most of all (-0.7%). The growth leader is the financial sector (+ 0.6%).

At closing:

DJIA + 0.21% 20,937.91 +43.08

Nasdaq + 0.08% 6,138.71 +5.09

S & P + 0.18% 2.398.42 +4.40

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