Major US stock indexes recovered and closed in positive territory after the riots amid growing geopolitical tensions on the Korean peninsula after North Korea launched another missile.
According to Japanese media, North Korea launched a missile in the direction of northern Japan. The missile flew over the Japanese island of Hokkaido and in 1,180 kilometers from it fell into the Pacific Ocean, said the general secretary of the Cabinet of Ministers Yoshihide Suga. The Japanese government called the DPRK's actions "an unprecedented, serious threat," calling an emergency meeting of the UN Security Council.
Strong data on the US also provided some support for the market. As it became known, in August the index of consumer confidence from the Conference Board improved after growth in July. The index is now 122.9 (1985 = 100), compared with 120.0 in July. The index of the current situation increased from 145.4 to 151.2, while the index of expectations slightly increased from 103.0 last month to 104.0. "Consumer confidence increased in August after a moderate improvement in July," said Lynn Franco, director of economic performance at the Conference Board. A stronger consumer assessment of current conditions was the main factor in increasing confidence, while the index of the current situation continued to hold at a 16-year high (July 2001, 151.3). Short-term expectations of consumers were relatively unchanged, albeit optimistic, which indicates that they do not expect the acceleration of economic activity in the coming months. "
The cost of oil declined on Tuesday, as the market faced the closure of 13% of the refining capacity in the US after the hurricane that reached the center of the oil industry. In view of this, investors began to fear that interruptions in the work of the refinery would cause a decline in demand for oil.
Most components of the DOW index finished the trades in positive territory (16 out of 30). The leader of growth was shares United Technologies Corporation (UTX, + 2.46%). Outsider were shares of NIKE, Inc. (NKE, -1.94%).
Most sectors of the S & P index showed an increase. The industrial goods sector grew most (+ 0.6%). The largest decline was shown by the financial sector (-0.3%).
At closing:
DJIA + 0.26% 21.865.37 +56.97
Nasdaq + 0.30% 6.301.89 +18.87
S & P + 0.08% 2.446.30 +2.06