US stocks point to a downward direction

07.04.2017

The US stock indexes, which started the session in a major, went down close the end of the session. Investors are studying the statistics on the labor market, news from Syria and are waiting for the continuation of the US-China talks in Florida.

Dow Jones Industrial Average index fell 45.39 points (0.22%) to 5,171.56 points. Standard & Poor's 500 dropped 5.69 points (0.24%) to 2351.80 points. Nasdaq Composite lost 19.37 points (0.33%) and amounted to 5859.58 points.

The number of jobs in the US increased last month by only 98,000, which was the weakest growth since May 2016. Experts on average predicted an increase by 185,000. At the same time, the unemployment rate unexpectedly fell from 4.7% to 4.5% - the lowest in over 10 years.

US Treasuries responded to labor market data by price growth and a decrease in yields (for 10-year securities - up to 2.29%).

The VIX volatility index, also called the "fear indicator" of Wall Street, jumped after the publication of Nonfarm Payrolls data by 6.4%, to its maximum since the beginning of this year.

Shares of the manufacturer of Tomahawk missiles Raytheon Co (NYSE: RTN) went up by 1% at the NYSE. The prices of securities of other defense-related companies are slightly rising: Lockheed Martin (NYSE: LMT) rose 0.5%, Boeing (NYSE: BA) rose 0.2%, and Northrop Grumman increased by 0.4%. This is because of the tensions in Syria after an alleged chemical attack by the regime in which over 50 people died. The markets hope the US would react promptly.

The market value of DuPont (NYSE: DD) fell 0.4%.

 

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