• Major US stock indexes finished trading below zero

Market news

29 November 2018

Major US stock indexes finished trading below zero

Major US stock indices fell slightly due to uncertainty regarding the high-level meeting between the US and China at the G20 summit.

The focus was also on the minutes of the Fed meeting. The document said that almost all participants in the November Fed meeting said that another rate increase "may be appropriate in the near future if the incoming information about the labor market and inflation will meet current expectations." “Many participants in the meeting made it clear that in future meetings, it is likely that greater emphasis should be placed on data when assessing the economic situation and monetary policy prospects. Such changes will demonstrate the FOMC’s flexible approach to a changing economic environment,” the protocol indicated.

In addition, market participants played a block of data on the United States. The Ministry of Labor reported that initial claims for unemployment benefits rose last week by 10,000 to 234,000, taking into account seasonal fluctuations, the highest level since mid-May. Primary circulation grows for three weeks in a row. Economists had forecast a decline to 220,000.

In addition, the Commerce Department said that consumer spending in the United States increased the most in seven months in October, but basic price pressure slowed down, showing the smallest annual increase since February. Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.6%. The data for September were revised downwards from 0.4% to 0.2%. Economists had forecast growth in spending by 0.4% in October. When adjusted for inflation, consumer spending rose by 0.4%, which is also the largest increase in seven months.

In addition, the National Association of Realtors (NAR) reported that the expected sales of housing in the US unexpectedly showed a significant decline in the month of October. NAR said that the index of pending home sales fell by 2.6% in October to 102.1 points, after rising by 0.7% in September (revised from + 0.5%). As a result, the index reached its lowest level since mid-2014. The sharp decline surprised economists, who expected the index to increase by 0.5%. In annual terms, expected sales decreased by 6.7%, registering the 10th consecutive drop.

Most of the DOW components showed a decrease (18 out of 30). Intel Corporation (INTC, -2.16%) was an outsider. The growth leader was the shares of The Boeing Company (BA, + 2.76%).

Most sectors of the S & P finished trading in the red. The most conglomerate sector fell (-0.5%). The growth leader was the base materials sector (+ 0.5%).

IndexChange, pointsClosedChange, %
Dow Jones-27.5925338.84-0.11
NASDAQ Composite-18.517273.08-0.25
S&P 500-5.992737.8-0.22
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