• Major US stock indexes finished trading above the zero mark

Market news

5 July 2018

Major US stock indexes finished trading above the zero mark

Major US stock indices have risen markedly, as signs that Washington may abandon plans to raise tariffs for European cars have somewhat eased fears about trade.

In addition, investors were acting out data on the United States. The report from Automatic Data Processing (ADP) showed that the growth rate of employment in the private sector of the US stalled in June, contrary to the forecasts of experts. According to the report, in June the number of employed increased by 177 thousand people compared with the figure for May at 178 thousand. Analysts had expected that the number of employed will increase by 190 thousand.

At the same time, the number of Americans applying for new unemployment benefits rose last week, but remained close to historic lows. Initial applications for unemployment benefits, a gauge of layoffs across all states, increased by 3000 to 231,000, seasonally adjusted for the week to June 30. Economists were expecting 225,000 new applications. In addition, the index of business activity in the US services, calculated by the Institute for Supply Management (ISM), rose in June to a level of 59.1 points compared to 58.6 points in May. Analysts predicted that the index will deteriorate to 58.3.

The focus of investors' attention was also the protocol of the last meeting of the Fed. The document said that the Fed officials at a meeting in June spoke in more detail about the prospects for rates in case of such a rapid acceleration of economic growth, which could cause the formation of soap bubbles or unsustainable price pressure. This may indicate the changing prospects of the US economy. "The participants of the meeting, in general, came to the conclusion that it would probably be advisable to continue the gradual increase of the key interest rate to a level that corresponds or is slightly higher than their long-term estimates by 2019 or 2020," the protocols noted.

Most DOW components recorded a rise (25 out of 30). The leader of growth was shares of Intel Corporation (INTC, + 2.64%). Outsider were shares of Chevron Corporation (CVX, -0.51%).

All sectors of S & P finished trading in positive territory. The technological sector grew most (+ 1.4%).

At closing:

Dow 24,356.74 +181.92 +0.75%

S & P 500 2,736.61 +23.39 +0.86%

Nasdaq 100 7,586.43 +83.75 +1.12%

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