• Major US stock indexes finished trading below the zero mark

Market news

3 July 2018

Major US stock indexes finished trading below the zero mark

Major US stock indexes moderately decreased following the results of the shortened trading session, as the growth of shares in the base materials sector was offset by a drop in quotations of the technology sector and Facebook shares due to renewed concerns over its data scandal.

A slight effect on the dynamics of trading was provided by the US. As it became known, new orders for goods manufactured in the USA unexpectedly increased in May, pointing to the strengthening of the manufacturing sector, but business expenses for equipment continued to show signs of slowing. The Ministry of Trade reported that production orders increased by 0.4% amid strong demand for machinery. Data for April were revised towards improvement - to -0.4% from -0.8%. Economists predicted that in May orders fell by 0.1%. Compared with May 2017, orders increased by 8.7%.

Also, data showed that the index of economic optimism in the US, calculated by the newspaper Investor's Business Daily and the research firm TechnoMetrica Institute of Policy and Politics, significantly improved in July, and was higher than the experts' forecasts. The index rose to 56.4 points from 53.9 points in June, while experts expected that it would rise only to 54.2 points. As a result, the index recorded the third increase in a row and reached the second highest level since October 2004.

Most DOW components recorded a decline (18 of 30). Outsider were the shares of NIKE, Inc. (NKE, -2.60%). The leader of growth was the shares of The Coca-Cola Company (KO, + 1.33%).

S & P Sectors completed trades are mixed. The base materials sector grew most (+ 1.0%), while the technological sector showed the largest decline (-0.8%).

At closing:

Index

Dow 24,174.82 -132.36 -0.54%

S & P 500 2,713.22 -13.49 -0.49%

Nasdaq 1007,502.67 -65.01 -0.86%

Market Focus
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