• Major US stock indices grew moderately

Market news

14 July 2017

Major US stock indices grew moderately

The major stock indexes of the United States finished trading with a rise, as weak economic data reduced the chances of an increase in rates this year. Meanwhile, the moderate forecasts of JPMorgan and Wells Fargo limited profit.

As it became known, the prices that Americans pay for goods and services remained unchanged in June, which reflects more low prices for gasoline, and also shows that the recent surge in inflation was temporary. The consumer price index, or the cost of living, did not change last month, the government said on Friday. Economists predicted an increase in the CPI by 0.1%.

In addition, retailers spending in the US declined in June for the second consecutive month. Retail sales - an indicator of consumer spending in stores, restaurants and websites - fell by 0.2% in seasonally adjusted terms in June compared to the previous month, the Ministry of Commerce said. Economists had expected growth of 0.1%. In May, retail sales decreased by 0.1%. This was the first decline in sales from July to August 2016.

Industrial production in the US increased in June stronger than analysts' forecasts, as the demand for natural resources, cars and equipment recovered, according to the Federal Reserve. Industrial production grew 0.2% after falling 0.4%, overall industrial production, which also includes mining and utilities, increased by 0.4% after rising 0.1%, and capacity utilization rose to 76.6% from 76.4%.

It is also worth noting that the preliminary results of the studies presented by Thomson-Reuters and the Michigan Institute showed that the mood sensor among US consumers fell in June more than predicted by average experts' forecasts. According to the data, in July the consumer sentiment index fell to 93.1 points compared to the final reading for June at the level of 95.1 points. According to average estimates, the index had to drop to the level of 95 points.

Almost all components of the DOW index recorded a rise (27 out of 30). Leader of growth were shares of Wal-Mart Stores, Inc. (WMT, + 1.95%). Outsider were the shares of JPMorgan Chase & Co. (JPM, -0.69%).

All sectors of S & P completed the auction in positive territory. The sector of basic materials grew most (+ 0.9%).

At closing:

Dow + 0.40% 21.639.59 +86.50

Nasdaq + 0.61% 6,312.47 +38.03

S & P + 0.45% 2,458.96 +11.13

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