Novosti i prognoe: tržište kapitala od 21-11-2019

Major US stocks declined moderately as investors continued to weigh conflicting reports of recent developments in US-China trade negotiations.

The Wall Street Journal (WSJ) reported that during a telephone conversation believed to have taken place at the end of last week, Chinese Deputy Prime Minister Liu He invited US Trade Representative Robert Lighthizer and Finance Minister Steven Mnuchin to another round of talks in Beijing . It is unclear whether the US negotiators accepted Liu’s invitation. However, according to WSJ, US officials are ready to meet with their Chinese counterparts.

Meanwhile, the South China Morning Post (SCMP), a Chinese newspaper, said that U.S. tariffs on Chinese imports, which are due to take effect on December 15, may be delayed even if a trade deal had not been signed by then. The publication also notes that the parties are "on the verge" of reaching an agreement, citing a source close to the Trump administration. This information appeared after Reuters reported on Wednesday that the signing of the “first phase” of the trade deal could be postponed to next year, as China insists on a wider tariff reduction, and the Trump administration is raising its own demands.

The focus was also on US data. The National Association of Realtors (NAR) said that in October home sales on the secondary market rose 1.9% to an annual rate of 5.46 million, after falling 2.5% to 5.360 million in September. Economists had expected sales in the secondary housing market to rise to 5.47 million from the 5.38 million originally reported in the previous month. According to the report, sales recovery in the secondary housing market was mainly driven by strong growth in the South, where existing home sales rose 4.4% to 2.350 million. Midwestern home sales also rose 1.6%, while home sales on Northeast and West fell 1.4% and 0.9%, respectively.

DOW components completed trading mixed (15 in the black, 15 in the black). Outsider were the shares of The Procter & Gamble Company (PG; -1.59%). The biggest gainers were Exxon Mobil Corp. (XOM; + 2.41%).

Almost all S&P sectors recorded a decline. Only the raw materials sector (+ 0.8%) and the health sector (+ 0.2%) showed growth. The largest decline was recorded by the conglomerate sector (-0.5%).

At the time of closing:

Dow 27,766.29 -54.80 -0.20%

S&P 500 3,103.54 -4.92 -0.16%

Nasdaq 100 8,506.21  -20.5 -0.24%