Moscow. November 13. U.S. stock indexes fell on Thursday for a maximum six weeks in the magnitude of the decline in raw material prices, with investors waiting for the first many years of higher interest rates in the U.S. in the near future, reported Bloomberg.
Standard & Poor’s 500 finished in the red six of the last seven trading sessions, and now its decline with the beginning of the year is 0.6%, according to MarketWatch.
Emergency stimulus measures, including zero interest, no longer need the us economy, which almost recovered to a normal state, said the President of the Federal reserve Bank (FRB) of St. Louis James Bullard, who is not a voting member of the Federal open market Committee (FOMC) this year. He is considered one of the most active supporters of the rate increase.
Meanwhile, his colleague from the Chicago fed, Charles Evans, sticking to softer positions and voting in the FOMC this year, said Thursday that regardless of the timing of the first rate hike guidance, the fed should make clear that the subsequent increase in the cost of borrowing will not be sharp.
The futures market is now assessing the probability of a rise in US interest rates in December, about 64% against 27% in less than a month ago.
All ten industry groups S&P 500 showed a decline at the end of trading on Thursday, leaders were made by raw materials companies. The Bloomberg index, the calculation of which includes 22 commodities, fell to its lowest level since 1999 due to the continuing reduction of demand from China and the strengthening of the U.S. dollar.
In particular, decreased share prices of oil companies Chevron (2.5%)and Exxon Mobil (2.7%).
The price of the securities mining Freeport-McMoRan Inc. fell by 5.8%, to its lowest level since August 26.
The capitalization of the aluminum giant Alcoa fell 3.2% to its lowest level in two years.
Among the 30 companies in the Dow Jones, the most significant drop in prices showed stocks of the world’s largest manufacturer of road construction equipment Caterpillar (4.5%).
Rate securities Advance Auto Parts Inc. fell by 15.4% after the auto parts retailer downgraded its earnings forecast and announced the resignation of chief Executive officer.
On average, analysts expect profits of companies from the calculation of the index Standard & Poor’s 500 over the past quarter decreased by 3.8%.
Among companies reporting, about 73% of profits were better than forecasts, but revenue in 56% of cases was below expectations.
The Dow Jones Industrial Average on Thursday sank to 254,15 paragraph (1,44%) – to 17448,07 item.
Standard & Poor’s 500 at the end of trading fell by 29.03 points (1,4%), amounting to 2045,97 item.
The value of the Nasdaq Composite over the day decreased by 61,94 paragraph (1,22%) – to 5005,08 item.
The volume of transactions amounted to about 7.1 billion shares, which is 4% less than the average daily figure for the last three months.