Major US stock indices rose slightly on the first day of an eventful week. The market was supported by favorable consumer spending data, as well as hopes for resolving a trade dispute with China, solid corporate reporting and maintaining the dovish position of the Fed.

As the report of the Ministry of Commerce showed, consumer spending in the US rose to a maximum in nine and a half years in March, but price pressure remained muffled, and a key inflation indicator showed the smallest annual increase in 14 months. According to the report, consumer spending, which accounts for more than two-thirds of economic activity in the United States, rose by 0.9% as households stepped up car purchases and began to spend more on health care. Consumer spending rose 0.1% in February. At the same time, inflation pressure in March was mild. The personal consumption price index (PCE) excluding volatile food and energy components, which is the preferred indicator of the Fed's inflation, did not change in March, after rising 0.1% in February. This reduced the annual growth of the so-called basic price index PCE to 1.6%, the smallest increase since January 2018, from 1.7% in February, increasing the likelihood of the Fed keeping the “pigeon” position on interest rates at the next regulator meeting, the results of which will be announced on Wednesday .

Market participants also continued to closely monitor the course of trade negotiations between the US and China. As reported by The New York Times, on Sunday, US Treasury Secretary Mnuchin said that trade negotiations between Washington and Beijing are entering the final stage. “We are entering the home straight,” he said in an interview with the publication. “I think both sides have a desire to reach an agreement,” he added. “We have made great progress.”

As expected, US Trade Representative Robert Lighthizer and Treasury Secretary Stephen Mnuchin will resume trade negotiations with China in Beijing tomorrow.

About 160 S & P 500 companies plan to publish their quarterly results this week, including such giants as Alphabet (GOOG), General Motors (GM), General Electric (GE), Merck (MRK), Pfizer (PFE), McDonald's (MCD), Apple (AAPL) and DowDuPont (DWDP). According to Refinitiv, analysts now expect that the profits of the S & P 500 companies in the last quarter will show a decrease of only 0.2% y / y, which is a dramatic improvement compared with a 2% y / y decline predicted at the beginning of the month.

Most of the components of DOW finished trading in positive territory (16 of 30). The growth leader was the shares of The Goldman Sachs Group (GS; + 2.15%). Intel Corp shares were an outsider. (INTC; -2.60%).

Almost all sectors of the S & P recorded an increase. The sector of conglomerates grew the most (+ 3.6%). The largest decline was shown by the utility sector (-0.4%).

At the time of closing:

Dow 26,554.25 +10.92 +0.04%

S & P 500 2,943.03 +3.15 +0.11%

Nasdaq 100 8,161.85 +15.46 +0.19%

U.S. stock-index futures traded flat on Monday ahead of busy week, which will feature another slew of earnings reports, the rate decision from the Fed on Wednesday, and the Employment Situation Report on Friday. In addition, USTR Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to resume U.S.-China trade talks in Beijing tomorrow.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

American Express (AXP) downgraded to Neutral from Buy at UBS

Intel (INTC) downgraded to Hold from Buy at Argus

3M (MMM) downgraded to Hold from Buy at Gordon Haskett

Disney (DIS) target raised to $150 from $137 at J.P. Morgan

April 29

After the Close:

Alphabet (GOOG). Consensus EPS $10.17, Consensus Revenues $37358.75 mln

April 30

Before the Open:

General Electric (GE). Consensus EPS $0.09, Consensus Revenues $27364.40 mln

General Motors (GM). Consensus EPS $1.12, Consensus Revenues $35556.28 mln

MasterCard (MA). Consensus EPS $1.66, Consensus Revenues $3857.26 mln

McDonald's (MCD). Consensus EPS $1.76, Consensus Revenues $4943.45 mln

Merck (MRK). Consensus EPS $1.05, Consensus Revenues $10452.37 mln

Pfizer (PFE). Consensus EPS $0.75, Consensus Revenues $13011.52 mln

After the Close:

Advanced Micro (AMD). Consensus EPS $0.06, Consensus Revenues $1257.37 mln

Apple (AAPL). Consensus EPS $2.36, Consensus Revenues $57392.41 mln

May 2

Before the Open:

DowDuPont (DWDP). Consensus EPS $0.85, Consensus Revenues $19501.09 mln

According to the estimates of analysts at TD Securities, China’s official April manufacturing PMI to increase to 50.9 from 50.5 in March.

• China’s March data dump broadly beat expectations and revealed that stimulus measures were kicking in. April will likely maintain this constructive tone, with further signs of stabilization.
• Forward-looking components of the March CPI such as manufacturing new orders and expected production moved higher. Separately, US and China continue to edge towards a trade deal. The upturn in electricity output and increased lending, also suggest some improvement in manufacturing activity and sentiment.