Novosti i prognoe: tržište kapitala od 30-10-2019

Major US stock indices rose moderately, as investors assessed mixed quarterly results of US companies and analyzed the results of the meeting of the Federal Reserve System (FRS).

The focus of market participants was also preliminary data on US GDP, which showed that the US economy grew in the third quarter more than expected, but slowed down slightly from the second quarter, as business investment declined. According to a report by the Department of Commerce, US GDP grew at an annualized rate of 1.9% in the third quarter, falling slightly from 2% in the second quarter. Economists had expected the economy to grow by 1.6%.

In addition, a report from ADP and Moody’s Analytics showed that the number of people employed in the United States in October grew faster than expected, but steady growth was offset by a sharp downward revision over the previous month. According to the report, in October, companies hired 125,000 employees. This is evidenced by data published on Wednesday. Economists had expected an increase in the number of employed per 100,000 people.

As for the Fed meeting, the Central Bank lowered the interest rate for the third time this year, refuting expectations for a further reduction in the short term. The Fed gave a signal that the threshold for lowering the rate in the future is likely to be higher after the last decrease, as a result of which a range of 1.5% -1.75% was established. Bank executives abandoned the rhetoric that was used in June, July and September, according to which the FOMC "will act in an appropriate manner" to support economic growth. They replaced the phrase with a milder alternative. "The committee will continue to monitor the impact of the incoming information on economic prospects, determining the appropriate path" for the target rate, the Central Bank said.

Most DOW components completed trading in positive territory (21 out of 30). The biggest gainers were Johnson & Johnson (JNJ; + 2.86%). Outsiders were Chevron Corporation shares (CVX; -1.48%).

Almost all S&P sectors recorded an increase. The utilities sector grew the most (+ 0.8%). Only the raw materials sector showed a decrease (-1.0%).

At the time of closing:

Index

Dow 27,186.69 +115.27 + 0.43%

S&P 500 3,046.77 +9.88 + 0.33%

Nasdaq 100 8,303.98 +27.12 + 0.33%