Major US stock indexes showed a moderate increase, as investors bet on Trump’s policy, and expect that the market will be friendly. The dynamics of trading was also influenced by comments the vice-chairman of the US Federal Reserve Stanley Fischer and rising oil prices.
Mr. Fisher in his speech on Monday, said that some of the fiscal measures proposed by Trump, in particular those that improve productivity, can improve the capacity of the economy and help counter some of the long-term economic problems. However, as noted by the deputy chairman of the Fisher, there is not much room to increase the deficit without negative consequences in the future.
Oil prices rose by about 4 per cent, its highest level in three weeks, the reason for that was the weakening of the US dollar and investors’ hopes to reach agreement by OPEC to reduce oil output in late November. In late September, at an informal meeting of OPEC in Algeria agreed production limit in the range of 32,5-33 mln. Barrels of oil per day, but on specific limits for each of the countries is no agreement.
Among the corporate nature of the message it is worth noting the news that on Friday, Facebook board (FB) approved the buyback of own shares of class A in the amount of up to $ 6 billion. According to the company, the repurchase program will enter into force in the first quarter of 2017 and will not be have a fixed expiration date. At the same time the company Citigroup (C) announced an increase in share repurchase program by $ 1.75 billion.
DOW index components closed mostly in positive territory (23 of 30). Most remaining shares grew E. I. du Pont de Nemours and Company (DD, + 1.74%). Outsider were shares of 3M Company (MMM, -0.93%).
All business sectors S & P index ended the day higher. The leader turned out to be the basic materials sector (+ 2.2%).
At the close:
Dow + 0.47% 18,956.62 +88.69
Nasdaq + 0.89% 5,368.86 +47.35
S & P + 0.75% 2,198.18 +16.28
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