• Major US stock indexes finished trading near zero

Market news

26 May 2017

Major US stock indexes finished trading near zero

Major US stock indices closed near the zero mark after six consecutive days of growth, as investors took a breather before the three-day weekend.

A strong batch of revenue reports from retailers led to the S & P 500 and Nasdaq Composite reaching a record closing level on Thursday, placing all three major indexes on the trajectory to record their strongest weekly profits since late April.

In addition, as it became known, the real gross domestic product (GDP) increased at an annualized rate of 1.2% in the first quarter of 2017, according to the "second" estimate published by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased by 2.1%. The GDP estimate published today is based on more complete source data than was available for a preliminary assessment published last month. In a preliminary estimate, real GDP growth was 0.7%. Given this second assessment for the first quarter, the overall picture of economic growth remains the same.

In addition, new orders for major capital goods produced in the US in April did not change unexpectedly, and supplies decreased, indicating a cooling of production activity, which could further temper expectations of a sharp rebound in economic growth in the second quarter. The Ministry of Commerce reported that orders for capital goods not related to defense orders, with the exception of aircraft that are closely monitored as planned business expenses, have not changed for the second consecutive month. Earlier it was reported that these so-called basic orders in March increased by 0.5%.

At the same time, the final results of Thomson-Reuters and the Michigan Institute showed that in May US consumers felt slightly more optimistic about the economy than last month. According to the data, in May the consumer sentiment index rose to 97.1 points compared with the final reading for April 97 points and the preliminary value for May 97.7 points. It was predicted that the index will be 97.5 points.

Most components of the DOW index closed in the red (16 of 30). More shares fell The Home Depot, Inc. (HD, -0.97%). The leader of growth was the shares of The Walt Disney Company (DIS, + 1.04%).

The sectors of the S & P index showed mixed dynamics. The health sector fell most (-0.3%). The growth leader was the conglomerate sector (+ 0.7%).

At closing:

Dow -0.01% 21,080.28 -2.67

Nasdaq + 0.08% 6,210.19 +4.93

S & P + 0.03% 2.415.82 + 0.75

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.