Major US stock markets closed around zero after GE's shares reached the lowest level in five years, and investors worried about the future of the US tax reform plan.
So, General Electric Co. (GE) will drastically cut its business to focus on aviation, energy and healthcare, focusing on sectors that the company believes can bring profit. The 125-year-old company cut dividends twice and the profit forecast. The company's shares fell, as investors worry about how the company will generate cash to increase the value of the shares.
Oil prices were in a narrow range on Monday, as support from tensions in the Middle East region and a record number of long positions among fund managers was counterbalanced by the growth of oil production in the US. Experts note that tensions in the Middle East supported the market, despite concerns that production could increase even more, especially in Saudi Arabia. In terms of supply, tensions in the Middle East raised prospects for disruptions, traders said.
Most components of the DOW index recorded a rise (16 out of 30). The growth leader was the shares of The Home Depot, Inc. (HD, + 1.24%). Outsider were shares of General Electric Company (GE, -7.51%).
Sectors Index S & P completed the auction mixed. The utilities sector grew most (+ 0.7%). The largest decrease was shown by the sector of conglomerates (-1.2%).
At closing:
DJIA + 0.08% 23.439.90 +17.69
Nasdaq + 0.10% 6,757.60 +6.66
S & P + 0.10% 2.584.84 + 2.54