• The main US stock indexes finished trading with a rise

Market news

2 October 2017

The main US stock indexes finished trading with a rise

The main US stock indices grew moderately on Monday, while S & P and Dow updated their record highs, which was facilitated by the publication of data that indicate the strength in the economy.

A certain negative impact on market sentiment was reported on the mass shooting at a music festival in Las Vegas on Sunday evening, as a result of which at least 58 people were killed and more than 500 were injured.

The results of the September study from IHS Markit signaled an improvement in the conditions in the US manufacturing sector - the final PMI index reached 53.1, slightly higher than the preliminary estimate of 53.0 and more than 52.8 in August. The rise was supported by further growth in production and new orders. Strong demand from customers was a key factor in accelerating the growth in the number of employees to the strongest level for the year. Business confidence also remained strong, despite the decline since August. The pressure of selling prices has increased, and purchase prices have risen at a maximum rate since December 2012.

Meanwhile, a report published by the Institute for Supply Management (ISM) showed: in September, activity in the US manufacturing sector improved despite the projected decline. The PMI index for the manufacturing sector was 60.8 points against 58.8 points in August. Analysts had expected that the figure would drop to 58.0 points. The value of the ISM index, exceeding 50, is usually considered as an indicator of the growth of production activity. In addition, more detailed information showed: the price index in September was 71.5 against 62.0 in August, the employment index rose to 60.3 from 59.9, the index of new orders improved to 64.6 from 60.3, the production index rose to 62.2 from 61.0, and the stock index fell to 52.5 against 55.5 in August.

Construction costs in the US increased in August, interrupting the two-month reduction, helped by the increase in both private and public spending. The Ministry of Trade reported that construction costs increased by 0.5%, to $ 1.21 trillion. Meanwhile, the change in expenses for July was revised downwards - to - 1.2% instead of the previously noted decrease of 0.6%. Economists predicted that in August spending will increase by 0.3%.

Most components of the DOW index recorded a rise (24 out of 30). The leader of growth was shares of Intel Corporation (INTC, + 2.34%). Outsider were the shares of The Coca-Cola Company (KO, -0.49%).

Almost all sectors of the S & P index finished trading in positive territory. The healthcare sector grew most (+ 0.9%). Decrease showed only the sector of conglomerates (-0.2%).

At closing:

DJIA + 0.68% 22.557.60 +152.51

Nasdaq + 0.32% 6.516.72 +20.76

S & P + 0.39% 2.529.12 +9.76

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.