Market news
03.05.2018, 20:21

The main US stock indexes finished trading mostly in the red

The main US stock indexes mostly fell, as investors were wary of the results of trade negotiations between the US and China. Pressure on the market also provided frustrating profit reports and mixed statistics for the US.

The Ministry of Labor reported that the number of Americans who submitted new applications for unemployment benefits rose slightly last week, but remained at a historically low level. Initial applications for unemployment benefits, an indicator of layoffs across the United States, increased by 2000 people to 211,000, seasonally adjusted for the week ended April 28. Economists were expecting 225,000 new applications last week. 209,000 calls for the previous week were the lowest since December 6, 1969, when the population and labor force in the US were much less than today.

At the same time, in March, the US trade deficit fell by 15%, to the lowest level in six months, but the decline is most likely temporary. The US is on track to achieve another major trade gap in 2018, which will exceed the deficit received in the previous year. The deficit fell to $ 49 billion in March from $ 57.7 billion in February, the Commerce Ministry reported. Economists predicted a deficit of $ 50 billion.

The data also showed that the index of business activity in the US services sector, calculated by the Institute for Supply Management (ISM), deteriorated in April to 56.8 points from 58.8 points in March. Analysts predicted that the figure will drop only to 58.1 points. The ISM said that the expansion of activity in the service sector has been fixed for the 100th month in a row.

In addition, the survey results Markit testified to the growth of business activity in the US services sector. However, although growth rates accelerated, they remained below the long-term average. The seasonally adjusted final service PMI from IHS Markit rose to 54.6 in April from 54.0 in March. The last value of the index was the highest for three months and indicates a strong expansion of business activity in the services sector.

Most DOW components recorded a decrease (20 out of 30). The leader of growth was the shares of The Boeing Company (BA, + 2.35%). Outsider were the shares of NIKE, Inc. (NKE, -1.85%).

Almost all sectors of S & P finished trading in the red. The largest decline was observed in the conglomerate sector (-0.9%). Only the sector of industrial goods grew (+ 0.2%)

At closing:

Dow 23,930.15 +5.17 +0.02%

S&P 500 2,629.73 -5.94 -0.23%

Nasdaq 100 7,088.15 -12.75 -0.18%

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