Novosti i prognoe: tržište kapitala od 05-12-2019

Major US stock indexes rose slightly against the backdrop of favorable data on the US labor market. However, investors were cautious due to the lack of significant messages on trade negotiations between the US and China.

The representative of the Ministry of Commerce of China, Gao Feng, said today that representatives of both countries remain in close contact on trade issues. However, he did not provide further details on the progress of the negotiations. Gao also added that China "believes that if both parties reach an agreement on the first phase of the agreement, tariffs should be accordingly reduced."

Gao’s comments came after Wednesday, Bloomberg reported citing informed sources that the parties were approaching agreements on what tariffs should be abolished and how to guarantee China’s purchase of agricultural products from the United States. US President Donald Trump also said on Wednesday that he believes trade negotiations with Beijing are progressing "very well."

As a Labor Department report showed, the number of Americans applying for unemployment benefits fell unexpectedly last week, reaching the lowest level in seven months. This suggests that the labor market remains stable even in the face of a slowing economy. According to the Ministry of Labor, the number of applications for unemployment benefits fell by 10,000 to 203,000, seasonally adjusted for the week ending November 30, which is the lowest since mid-April. Economists predicted that the number of applications will increase to 215,000 in the last week.

In a separate report, the Ministry of Commerce reported that orders for manufactured goods rose 0.3% in October after a two-month drop, helped by growing demand for machinery and transportation equipment. Last change coincided with forecasts. Compared to October 2018. production orders were down 0.4%.

Most DOW components completed trading in positive territory (16 out of 30). The biggest gainers were NIKE Inc. (NKE; + 2.20%). Outsiders were 3M Company shares (MMM; -1.80%).

Most S&P sectors recorded an increase. The real estate sector grew the most (+ 2.4%). The largest decline was shown by the health sector (-0.2%).

At the time of closing:

Index

Dow 27,678.12 +28.34 + 0.10%

S&P 500 3,117.47 +4.71 + 0.15%

Nasdaq 100 8,570.70 +4.03 + 0.05%