• The main US stock indices fell on the results of today's trading

Market news

9 August 2017

The main US stock indices fell on the results of today's trading

Major US stock indexes finished trading in negative territory as investors switched to safe assets after US President Donald Trump's warning against North Korea exacerbated tensions with the nuclear power.

Today, officials of the DPRK declared their readiness to strike a missile strike at the US Air Force base on the island of Guam, located in the Pacific Ocean, if such a decision is made by the head of state. These comments are a reaction of North Korea to the statements of US President Donald Trump, who demanded that North Korea stop "further threats" and warned that the US would respond with "the fire and fury that the world has never seen."

In addition, the focus was on statistics on the United States. As it became known, the productivity of workers in the US grew in the second quarter, but remained alarmingly sluggish during the current period of economic expansion. Labor productivity in the non-agricultural sector of the economy increased by 0.9% in seasonally adjusted terms, compared with an increase of 0.1% in the first three months of 2017. Economists had expected growth of 0.7% in the last quarter.

Meanwhile, wholesale inventories in the US increased more in June than previously reported, recording their biggest increase in six months, as car inventories grew even more as sales fell. The Ministry of Trade reported that wholesale stocks rose by 0.7% after an increase of 0.6% in May.

Components of the DOW index finished the trades mixed (16 in the red, 14 in the black). Outsider were the shares of The Walt Disney Company (DIS, -4.54%). The growth leader was the shares of The Home Depot, Inc. (HD, + 1.30%).

All sectors of the S & P index recorded a decline. The largest decline was observed in the sector of conglomerates (-0.9%).

At closing:

DJIA -0.18% 22.046.65 -38.69

Nasdaq -0.28% 6.352.33 -18.13

S & P -0.04% 2,473.92 -1.00

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