Major US stock indices slightly increased, continuing yesterday’s rally, and again renewing its record highs, as the fall in the services sector was offset by an increase in the conglomerate sector.
A certain influence on the dynamics of trading was provided by the US data, which indicated that inflation at the wholesale level recovered by the end of summer, but most of the growth reflects higher prices for gasoline. The Ministry of Labor said that in August the producer price index rose by 0.2%. Economists predicted an increase in wholesale inflation by 0.3% after a slight decline in July. A nearly 10% jump in the cost of gas accounted for most of the increase in wholesale inflation last month. The so-called base prices, a measure that removes food, energy and retail trade, also increased by 0.2%. The base rate is seen as a more stable barometer of inflation. The price increase in August pushed the 12-month rate of inflation to 2.4% from 1.9%, just below the 5-year high.
The cost of oil jumped by more than 1.5 percent after the International Energy Agency (IEA) reported that the global surplus of crude oil began to decline due to strong global demand and falling production among OPEC countries and other producers. “Based on recent rates made by investors, the expectations are that the markets are tightening and prices will grow, although very modestly,” the IEA monthly report says. “The growth in demand continues to be stronger than expected, especially in Europe and the US,” the IEA said, while increasing its estimate of world oil demand growth in 2017 to 1.6 million barrels per day from 1.5 million barrels per day.
Most components of the DOW index recorded a rise (19 out of 30). The leader of growth was shares of Chevron Corporation (CVX, + 1.54%). Outsider were shares of Caterpillar Inc. (CAT, -1.18%).
Most sectors of the S & P index finished trading in the red. The utilities sector showed the greatest decrease (-0.5%). The conglomerate sector grew most (+ 0.7%).
DJIA + 0.18% 22,158.18 +39.32
Nasdaq + 0.09% 6,460.19 +5.91
S & P + 0.08% 2.498.36 +1.88
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