The main US stock indices grew moderately on Friday, reaching new record levels, which was mainly caused by a rise in price of shares of technology firms and pharmaceutical companies.
In addition, some influence on the course of trading was provided by mixed data for the United States.
The US Department of Commerce reported that consumer spending rose slightly in August, probably due to the fact that Hurricane Harvey had a negative impact on car sales, and annual inflation increased at the slowest pace since late 2015, indicating moderation in economic growth in the third quarter . Consumer spending in August rose by 0.1 percent. This followed an increase of 0.3 percent in July. Taking into account inflation, consumer spending fell by 0.1 percent in August, noting the first drop since January. The consumer price index (PCE), excluding food and energy, rose by 0.1 percent. The annual growth in the base PCE index slowed to 1.3 percent from 1.4 percent in July. This was the weakest growth since November 2015.
Meanwhile, Chicago purchasing managers’ index rose to 65.2 in September from 58.9 in August, reaching the highest level for three months, and the second – for three years. Optimism among firms relative to the business environment has strengthened, with each component of the index increased.
In addition, the final research results submitted by Thomson-Reuters and the Michigan Institute showed that in September, US consumers felt more pessimistic about the economy than last month. According to the data, in September the consumer sentiment index fell to 95.1 points compared to the final reading for August of 96.8 points and the preliminary value for September of 95.3 points. It was predicted that the index will be 95.3 points.
Most components of the DOW index finished trading in positive territory (18 out of 30). The leader of the growth were shares of Microsoft Corporation (MSFT, + 0.84%). Outsider were the shares of NIKE, Inc. (NKE, -1.48%).
Almost all sectors of the S & P index recorded an increase. The technological sector grew most (+ 0.7%). Decrease showed only the sector of public services (-0.1%).
At the moment, futures demonstrate the following dynamics:
Dow + 0.11% 22.405.09 +23.89
Nasdaq + 0.66% 6.495.96 +42.51
S & P + 0.37% 2.519.36 +9.30