Major US stock indexes finished trading in positive territory

Major US stock indices grew, but only slightly, as the protracted trade conflict between China and the US continued to put pressure on the markets.

A senior Chinese diplomat said that provoking trade disputes is “naked economic terrorism”, and the media reported that China has suspended purchases of soybeans in the United States due to a trade dispute. However, US President Donald Trump said that the United States are doing well in trade negotiations with China and that Beijing wants to make a deal with Washington.

Market participants also analyzed a block of important macroeconomic data. Thus, the report of the Ministry of Commerce showed that the US economic growth accelerated in the first quarter, but there are signs that the temporary growth of exports and the accumulation of stocks are already weakening, and production in factories is slowing down. US GDP in the first quarter grew by 31% year on year, the government reported in the second reading of the GDP report. In the period from October to December, the economic growth was 2.2%. While the government has reduced its initial estimate for investment in stocks, export growth has been boosted. These two volatile components were key drivers of GDP growth in the first quarter.

At the same time, the Ministry of Labor reported that the number of initial applications for unemployment benefits increased moderately last week, which indicates that the labor market remains in a stable position even in the conditions of economic slowdown. According to the report, the number of applications for unemployment benefits rose by 3,000, a seasonally adjusted 215,000 for the week ending May 25. The data for the previous week was revised to show 1,000 calls more than previously reported. Economists had forecast an increase in the number of applications by 215,000 over the past week.

A report released by the National Association of Realtors (NAR), pointed to an unexpected reduction in pending home sales in April. According to the report, the index of pending home sales fell in April by 1.5% to 104.3, after rising 3.9% in March (revised from + 3.8%) to 105.9. Economists had expected the index to grow by 0.9%.

Most of the components of DOW finished trading in positive territory (19 in positive territory, 11 in negative). The growth leader was McDonald's Corp. (MCD; + 1.66%). The outsider was Verizon Communications Inc. stock. (V; -2.32%).

Most sectors of the S & P recorded an increase. The technological sector grew the most (+ 0.4%). The largest decline was in the raw materials sector (-0.7%).

At the time of closing:

Dow 2,788.86 +5.84 + 0.21%

S & P 500 25,169.88 +43.47 + 0.17%

Nasdaq 100 7,567.72 +20.41 + 0.27%