Major US stock indexes finished trading above the zero mark after Fed Chairman Yellen said the strengthening of the prerequisites for raising interest rates.
Yellen said on Friday that the Fed is close to meeting its goals of maximum employment and price stability, speaking about consumer spending. However, the vice-chairman of the Fed’s Fisher said that the Central Bank may raise interest rates in September. With regard to the question of whether the Fed will raise rates in September and the second time before the end of the year, Fisher said Yellen statements give a positive answer to this question. According to the futures market, the probability of a Fed rate is 21% in September. Meanwhile, the possibility of increasing rates in the framework of the December meeting is estimated at 41.4% against 44.4% the previous day.
As it became known today, personal income increased by $ 71.6 billion (0.4%) in July, according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $ 60.1 billion (0.4%), and personal consumption expenditures (the PCE) increased $ 42.0 billion (0.3%). Real DPI increased 0.4% in July and a real PCE increased 0.3%. PCE price index was unchanged from June. Excluding food and energy, PCE price index increased by 0.1% in July.
Oil futures fell more than 1%, has come under pressure because of the increase in reports of oil production in the Middle East. On Saturday, Iraqi Oil Minister said that his country will continue to increase oil production. In addition, two representatives of the state-owned South Oil Company said that oil exports from Iraq’s southern ports reached an average of 3.205 million. Barrels per day in August, exceeding the average of July (3.202 million. Barrels per day). Recall, Iraq is a major crude oil producers in the world, ranking second in its production among the member states of the
Most components of the DOW index finished trading in positive territory (27 of 30). More rest up shares The Travelers Companies, Inc. (TRV, + 1.06%). Outsider were shares of NIKE, Inc. (NKE, -0.70%).
All Sector S & P Index showed an increase. The leader turned conglomerates sector (+ 2.1%).
At the close:
Dow + 0.59% 18,503.81 +108.41
Nasdaq + 0.26% 5,232.33 +13.41
S & P + 0.52% 2,180.42 +11.38