The main US stock indexes have moderately grown, as the block of global strong economic data contributed to the growth of investors’ appetite for risk, while tensions on the Korean peninsula and concerns about the effects of tropical storm Harvey decreased.
The focus of the market participants was focused on the report of the Ministry of Trade, which showed that consumer spending in the US grew slightly less than expected in July, and annual inflation increased at the slowest pace since the end of 2015. According to the report, consumer spending, accounting for more than two-thirds of US economic activity, rose 0.3% last month after revised with an increase of 0.2% in June. Economists predicted that consumer spending in July will grow by 0.4% after earlier reported an increase of 0.1% in June.
In addition, the indicator of economic activity in the Chicago region in August did not change after the departure from the 3-year high in July. The index of purchasing managers Chicago (PMI) remained at 58.9 for the second month in a row. Economists had expected a small decline in the index in August – to 58.5.
However, according to the National Association of Realtors, unfinished transactions for the sale of housing fell in July for the fourth time in five months, since only in the West there was an increase in the activity of signing contracts. The index of unfinished transactions for the sale of housing – the forecast figure based on the signing of contracts – fell by 0.8% to 109.1 in July from the revised 110.0 in June. After the decline last month, the index is now 1.3% lower than a year ago, with the annual rate declining in three of the last four months.
Most components of the DOW index recorded a rise (21 out of 30). The leader of growth was the shares of E. I. du Pont de Nemours and Company (DD, + 1.96%). Outsider were shares of The Walt Disney Company (DIS, -1.60%).
All sectors of the S & P index finished trading in positive territory. The healthcare sector grew most (+ 1.8%). The utilities sector showed a minimal increase (+ 0.1%).
DJIA + 0.27% 21.952.42 +59.99
Nasdaq + 0.95% 6.428.66 +60.35
S & P + 0.57% 2.471.56 +13.97