• The main US stock indexes rose on the basis of today's trading

Market news

4 January 2018

The main US stock indexes rose on the basis of today's trading

The major US stock indexes finished trading in positive territory, with the Dow Jones industrial index for the first time exceeding 25,000, while other indices updated highs after strong US employment data added optimistic sentiments for sustainable growth worldwide.

Thus, data from Automatic Data Processing (ADP) showed that the growth rate of employment in the private sector of the US accelerated in December, and was stronger than forecast. According to the report, in December the number of employed grew by 250 thousand people compared to the figure for November at 190 thousand. Analysts had expected that the number of employed will increase by 190 thousand.

However, the number of Americans applying for unemployment benefits rose for the third week in a row last week, but this probably does not imply a significant change in labor market conditions, as data for several states, including California, was evaluated. Primary appeals for unemployment benefits in the US increased by 3,000 to 250 thousand people for the week ending December 30, the Ministry of Labor said on Thursday. Economists predicted that in the last week, orders will fall to 240 thousand.

Meanwhile, December data from Markit signaled a strong, but milder expansion of business activity in the US services sector. Seasonally adjusted final index of business activity in the US services sector from IHS Markit fell to 53.7 in December, from 54.5 in November. The last index was higher than the preliminary estimate (52.4). In accordance with the production trend, the growth rate of the volume of new orders slightly softened. At the price front, both purchase prices and inflation of vacation costs, were slightly weakened. In line with the softer business growth, the level of optimism in the sector fell to a 15-month low.

Most components of the DOW index recorded a rise (22 out of 30). The leader of growth was shares of General Electric Company (GE, + 2.01%). Outsider were shares of Intel Corporation (INTC, -1.61%).

Almost all sectors of the S & P index finished trading in positive territory. The conglomerate sector grew most (+ 1.6%). The decrease was shown only by the utilities sector (-0.6%).

At closing:

DJIA + 0.61% 25,075.13 +152.45

Nasdaq + 0.18% 7,077.92 +12.38

S & P + 0.40% 2.723.99 +10.93

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