Major US stock indexes fell moderately Tuesday amid mixed economic data and comments of a number of Fed officials.
According to the Ministry of Labor, consumer prices in the US remained unchanged in July, after rising 0.2% in June and May, as the cost of gasoline has fallen for the first time in five months. At the same time, core inflation has been moderate, which can further reduce prospects for increasing interest rates the Fed this year. During the 12 months to July, the consumer price index rose by 0.8% after rising 1.0 percent in June. Economists forecast that the consumer price index will be unchanged last month and will increase by 0.9% compared to last year. The so-called core CPI, which excludes food and energy, rose by 0.1% in July. The base consumer price index increased by 2.2% after rising by 2.3% year on year.
At the same time, the establishment of new homes in July rose to 1211 thousand. Against 1189 thousand. And June, and analysts forecast at the level of 1180 thousand. At the same time, the number of building permits dropped to 1152 thousand. To 1153 thousand. Analysts expected 1160 thousand.
In addition, the industrial production growth rate in the US in July accelerated to 0.7% after rising 0.6% in June. Analysts expected an increase of 0.3%. Compared to July of the previous year, industrial production fell by 0.5% after declining by 0.7% y / y in the previous month.
With regard to the statements made by the Fed, Dudley noted that allows increase in the interest rate the Federal Reserve is already September. "We are approaching the moment when it is appropriate to re-raise the rate, - said Dudley -. In US employment in the last 3 months is growing at an average rate at the level of 190 thousand per month, and economic growth should accelerate in the 2nd half of the year we started.. see the signals accelerating wage growth. overall, the US economy is in good condition. "
Meanwhile, the head of the Federal Reserve Bank of Atlanta, Lockhart said that optimistic about the economic outlook, and therefore feel justified in raising rates. He added that the weak data on US GDP for the 2nd quarter should be viewed in the context of other factors. "Most of the fundamental factors right now a positive effect on consumer spending in the United States," - he said, adding that he remains confident in the prospects for the economy in the 2nd half of 2016 and 2017.
Gradually, investors' attention shifted to the protocols of the July meeting of the Fed, which could shed light on the Central Bank plans for the timing of rate hikes.
Most DOW components of the index closed in negative territory (21 of 30). Most remaining shares rose Intel Corporation (INTC, + 0.40%). Outsider were shares of Johnson & Johnson (JNJ, -1.44%).
Almost all sectors of the S & P index fell. The leader turned out to be the basic materials sector (+ 0.4%). Most utilities sector fell (-1.0%).
At the close:
Dow -0.45% 18,552.19 -83.86
Nasdaq -0.66% 5,227.11 -34.91
S & P -0.55% 2,178.18 -11.97