The main US stock indices almost did not change on Tuesday amid tense relations between the United States and North Korea. In addition, the focus of investors' attention was the statements of the Fed Chairman Janet Jellen regarding the prospects for the Central Bank's policy.
According to Yonhap news agency from South Korea, it appears that North Korea has strengthened its defense in the east after the Foreign Minister of North Korea said that US President Trump had declared war on Pyongyang, which gives him the right to retaliate, among which the right to shoot US bombers, even if they are not in the airspace of the DPRK.
Meanwhile, Fed Chairman Yellen noted that a gradual approach to policy change is particularly important given the restrained inflation and low neutral rate. "If you do not continue the gradual increase in rates in the future, you can face the risk of overheating the labor market," Yellen said, adding that it would be wrong to keep monetary policy unchanged until inflation returns to 2% . "The long-term inflation expectations may not correspond to the target level of 2%, but the FOMC still expects inflation to stabilize around 2% in the next few years," said the Fed chief. "The general conditions on the labor market are likely to again become the same , as they were before the crisis, FOMC will carefully study the incoming data and may change its opinion on the basis of them. "
A certain influence on the course of trading also provided data on the United States. As it became known, the growth of house prices in July accelerated, led by some long-term hot spots and one unexpected newcomer. The housing price index from S & P / Case-Shiller for 20 megacities rose by 5.8% per annum, adjusted for seasonal fluctuations over the three-month period ending in July, and was higher than the June increase of 5.6%. Over the month, the index rose 5.9% after an increase of 5.8% in June.
Sales of new buildings fell in August, despite the fact that the housing market still needs supplies. Sales of new buildings reached a seasonally adjusted annual rate of 560,000 units, the Ministry of Commerce reported. This is 3.4% lower than a month ago, and 1.2% lower than in August 2016. Economists predicted sales at 588,000 units.
In addition, in September the index of consumer confidence from the Conference Board slightly decreased - to 119.8 (1985 = 100), compared with 120.4 in August. The index of the current situation decreased from 148.4 to 146.1, and the index of expectations slightly increased from 101.7 last month to 102.2.
Most components of the DOW index finished trading in the red (17 of 30). The leader of growth was the shares of Apple Inc. (AAPL, + 1.83%). Outsider were shares of McDonald's Corporation (MCD, -1.75%).
Most sectors of the S & P index showed an increase. The conglomerate sector grew most (+ 0.6%). The greatest decrease was shown only by the healthcare sector (-0.4%).
At closing:
DJIA -0.04% 22.286.32 -9.77
Nasdaq + 0.15% 6,380.16 +9.57
S & P + 0.01% 2,496.97 +0.31
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