Major US stock indexes ended the session in different directions, as the rise in prices of Microsoft shares (MSFT) was offset by disappointment after the announcement of the results of the last Fed meeting.
Microsoft shares (MSFT) rose 1.63% after reports that the company's board of directors decided to increase quarterly dividends by 11% to $ 0.51 / share, and also approved a new $ 40 billion share buyback program.
Some support to the market was provided by the expectations of a new round of trade negotiations between Chinese and American officials, which will be held in Washington. The main objective of these two-day discussions is to set the stage for high-level negotiations in early October, which will determine whether Washington and Beijing can move forward to conclude a deal or resume the introduction of higher tariffs.
Investors also analyzed macroeconomic data for the United States. Thus, the report of the Department of Labor showed that the number of initial applications for unemployment benefits in the United States grew less than expected and remained at historically low levels, which suggests that the labor market remains stable. According to the report, the number of applications for unemployment benefits rose by 2,000 to 208,000 for the week ending September 14. Economists predicted that the number of applications for unemployment benefits would increase to 213,000.
At the same time, the National Association of Realtors (NAR) released a report that reflected an unexpected surge in home sales in the US in August. According to NAR, home sales in the secondary market rose in August by 1.3%, to an annualized rate of 5.49 million units, after increasing by 2.5%, to 5.42 million units in July. Continued growth came as a surprise to economists, who expected sales in the secondary housing market to drop to 5.37 million.
Most of the DOW components completed trading in the red (19 of 30). Outsider were the shares of The Walt Disney Co. (DIS; -2.64%). The biggest gainers were Microsoft Corp. (MSFT; + 1.63%).
Most S&P sectors recorded a decline. The consumer goods sector (-0.4%) and the services sector (-0.4%) decreased more than others. The conglomerate sector showed the highest growth (+ 0.5%).
At the time of closing:
Dow 27,094.79 -52.29 -0.19%
S&P 500 3,006.79 +0.06 + 0.00%
Nasdaq 100 8,182.88 +5.49 + 0.07%
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2020 TeleTrade-DJ International Consulting Ltd
TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.