Major US stock indices decreased slightly as a result of the first trading session of this week, weighed down by the drop in energy and financial stocks.
As it became known today, consumer spending in the US recorded the largest increase in four months in April, and monthly inflation recovered, indicating the strengthening of domestic demand at the beginning of the second quarter, which may allow the Fed to raise rates in June. The Commerce Department reported that consumer spending, accounting for more than two-thirds of the US economy, rose 0.4% in April after a revised increase of 0.3% in March.
In addition, the growth in house prices in March continued to accelerate, creating a problem for the market, which has already experienced slow sales due to rising prices and a shortage of stocks. The housing price index from S & P / Case-Shiller, which covers the whole country, grew by 5.8% per annum in March after an increase of 5.7% in February.
At the same time, the index of consumer confidence from the Conference Board, which declined in April, again deteriorated in May. The index is now 117.9 (1985 = 100), compared with 119.4 in April. The current situation index slightly increased from 140.3 to 140.7, while the index of expectations fell from 105.4 last month to 102.6 in May.
The cost of oil declined by about a percent, reacting to concerns that the decline in production by the world's largest exporters may not be sufficient to get rid of the global overabundance that has been observed for almost three years.
Components of the DOW index finished trading mixed (14 in negative territory, 16 in positive territory). Most fell shares of The Goldman Sachs Group, Inc. (GS, -2.43%). Leader of growth were the shares of Verizon Communications Inc. (VZ, + 1.95%).
Most sectors of the S & P index recorded a decline. The sector of main materials fell most of all (-0.8%). The leader of growth was the utilities sector (+ 0.3%).
At closing:
DJIA -0.25% 21,027.79 -52.49
Nasdaq -0.11% 6,203.19 -7.00
S & P -0.12% 2,412.86 -2.96