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US markets closed higher on Wednesday

29 Jun 2017 Evaluate

The US markets closed higher on Wednesday, with the S&P 500 posting its largest one-day gain in two months while Nasdaq Composite recorded its best day in eight months. All the three main indexes erased Tuesday’s losses, which came after a delay to a vote on health-care bill, prompting worries about the prospects for President Donald Trump’s pro-growth agenda. On the economy front, an early look at US trade patterns in May points to a small decline in the nation’s trade deficit. The advanced trade gap in goods - services is excluded - fell by 1.8% to $65.9 billion in May. The government will release overall trade numbers for May next week, but the size of the trade deficit is generally tied to changes in exports and imports of goods. Trade patterns involving services rarely change much from month to month. A lower deficit gives a boost to gross domestic product, the official scorecard for the US economy. An advanced look at wholesale inventories, meanwhile, showed a 0.3% increase in May. And an early look at retail inventories reflected a 0.6% spike.

On the other hand, home purchase contract signings declined again in May, another sign of the headwinds working against momentum in the housing market. The pending home sales index from the National Association of Realtors slid 0.8%, marking the third-straight monthly decline. The index hit 108.5 in May and its April level was revised lower. It was lower compared to a year ago for the second month in a row in May, this time by 1.7%. The index forecasts future sales by tracking real estate transactions in which a contract has been signed, but the deal has not yet closed. No region had an increase in May. The index for the Northeast fell 0.8%, while in the South it slid 1.2%. In the West, pending home sales tumbled 1.3%. The index for the Midwest was unchanged. Only the index for the Northeast is higher than its level a year ago.

The Dow Jones Industrial Average added 143.95 points or 0.68 percent to 21,454.61, Nasdaq gained 87.79 points or 1.43 percent to 6,234.41, while S&P 500 edged higher by 21.31 points or 0.88 percent to 2,440.69.


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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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