Stock indices, which opened trading with growth, went into negative territory
Stock indices that opened the session on Friday with growth moved to decline during trading.
The issue of the public debt ceiling remains the focus of traders’ attention. The day before, the US Senate approved a package of measures extending the financing of the country’s government until December 3 of this year. After that, it was approved by the US House of Representatives and signed by US President Joe Biden. Will postpone the solution to the problem of the national debt limit, but only for a short time. In addition, Democrats in the House of Representatives decided to postpone the vote on Biden’s $ 1 trillion infrastructure plan, disagreeing on its main provisions.
The Dow Jones Industrial Average ended September with a 4.3% decline, the S&P 500 fell 4.8%, and the Nasdaq Composite – 5.3%. The Dow Jones fell 1.9% in the third quarter, while the S&P 500 and Nasdaq increased 0.2% and 0.4%, respectively.
Nevertheless, the indices are still significantly higher than at the beginning of the year, said Michael Hewson, chief stock market analyst at CMC Markets. “At the moment, we have enough reasons for concern – from rising energy prices to problems in supply chains and the threat of prolonged persistence of high inflation,” – quotes the expert of MarketWatch.
Statistics released on Friday showed a less significant-than-expected increase in American income in August, with a more significant jump in spending. Although revenues of the US population in the month before last rose by 0.2% compared to July, expenses increased by 0.8%, according to data from the country’s Department of Commerce. Analysts, according to Trading Economics, on average expected an increase in income by 0.3%, expenses – by 0.6%.
Meanwhile, the consumer price index (PCE) rose 4.3% in August over the same month in 2020, the fastest pace since 1991.
In September, the indicator of business activity in the US manufacturing sector (ISM Manufacturing) increased to 61.1 points from 59.9 points in August, while experts on average expected it to fall to 59.6 points.
US consumer confidence, calculated by the University of Michigan, rose to 72.8 points in September, up from 70.3 points a month earlier, final data showed. The indicator was at 71 points, and analysts did not expect its revision.
The Dow Jones Industrial Average by Friday dropped by 1.84 points (0.01%) and amounted to 33842.08 points.
Standard & Poor’s 500 fell by 9.76 points (0.23%) – to 4297.78 points.
The Nasdaq Composite lost 84.11 points (0.58%) to 14364.47 points.
Discounters operator Dollar Tree Inc. fell 1.3% after deteriorating stock valuations by analysts at KeyBanc Capital Markets, who expect higher company costs.
The share price of the video game maker Electronic Arts Inc. decreased by 1.2%. In addition, electronic Arts announced that Blake Jorgensen, the chief financial officer and operating officer, will leave the company next summer.
The shares of the pharmaceutical company Merck & Co. added 9.2% in price during trading on Friday, thanks to the positive test results of its drug for the treatment of COVID-19.
Zoom Video Communications rose 1.6% on news that its deal with cloud provider Five9 Inc. will not take place, as the latter’s shareholders voted against it. Five9 Inc.’s share price dropped by 0.7%.
The papers of the American cosmetics manufacturer Coty Inc. have risen in price by 2.6%. Coty has announced that it will sell its 9% stake in professional hair care products to KKR & Co., which will, in turn, repay half of its Coty convertible preferred shares.
