• Major US stock indexes finished trading in different directions

Market news

12 March 2019

Major US stock indexes finished trading in different directions

Major US stock indices have predominantly increased, as inflation data for February speaks in favor of the Fed's patient stance on future rate hikes, but the continued decline in Boeing (BA) stocks put pressure on the DJIA index.

The report of the Ministry of Labor showed that the consumer price index rose by 0.2% in February after three months in a row the figure remained unchanged. The rise in consumer prices coincided with the estimates of economists. According to the data, consumer price growth was partly due to the rebound in gasoline prices, which rose by 1.5% in February after falling by -5.5% in January. The jump in gasoline prices contributed to a 0.4% increase in energy prices and food prices (also 0.4%). Excluding food and energy prices, basic consumer prices rose 0.1% in February, after rising 0.2% in January. Economists also expected a 0.2 percent price increase. The annual consumer price growth rate slowed to 1.5% in February from 1.6% in January, while the growth rate of the basic consumer price index dropped to 2.1% from 2.2%. According to experts, the released data on the consumer price index suggest that the Fed will be patient in the matter of further raising rates, which, in turn, has a good effect on the stock market.

The value of Boeing (BA) shares fell by more than 6% after falling 5.3% on Monday, as more and more countries, including the UK, banned 737 MAX 8 aircraft after a crash in Ethiopia on Sunday. In addition, brokerage Edward Jones lowered the rating of BA shares to "Hold" ("Hold") from "Buy" ("Buy"), saying that accidents can lead to additional costs, delayed orders and put pressure on financial results.

Most of the components of DOW recorded an increase (21 of 30). The growth leader was UnitedHealth Group Incorporated (UNH, + 1.59%). The outsider was The Boeing Co. (BA; -6.08%).

Most sectors of the S & P ended in a plus. The health sector grew the most (+ 0.8%). The largest decline was in the industrial goods sector (-0.8%).

At the time of closing:

Dow 25,554.66 -96.22 -0.38%

S & P 500 2,791.57 +8.27 +0.30%

Nasdaq 100 7,591.03 +32.97 +0.44%

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