US stock indicators decline slightly due to political risks

In early trading on Wednesday, US stock indices are falling after the global stock market and high-tech sector due to increased political risks.

The Dow Jones Industrial Average index decreased by 31.16 points (0.13%) and amounted to 24149.48 points. Standard & Poor’s 500 dropped 2.67 points (0.10%) to 2626.90 points.

Nasdaq Composite lost 0.55 points (0.01%) and amounted to 6761.67 points.

The list of political topics, disturbing investors, was supplemented by the question of recognizing Jerusalem as the capital of Israel and transferring the US Embassy from Tel Aviv.

Earlier, several countries criticized Washington’s plans to recognize Jerusalem as the capital of Israel – in particular, Turkey, Morocco, Iran, the Vatican, as well as the Palestinian authorities opposed this decision. Israel regards Jerusalem as the capital of the state, but most countries refuse to recognize this, noting that this issue should be resolved through a dialogue between Israelis and Palestinians.

On the agenda are still issues of tax reform, raising the limit of the US public debt and financing the work of the government after December 8.

As it became known on Wednesday from the report of the industry organization ADP, the number of jobs in the US increased in November by 190 thousand – a rare case when official data coincided with the market forecast.

Data of the Ministry of Labor on the November unemployment will be made public on Friday. According to the consensus forecast of experts, the increase in the number of jobs last month was 195 thousand after the growth of the index by 261 thousand a month earlier, while unemployment remained at 4.1%.

Labor productivity in the US grew by 3% in the third quarter of 2017, at a record pace from July-September 2014, the final figures of the country’s Ministry of Labor show.
Preliminary data also indicated an increase of 3%, and surveyed analysts on average expected a 3.3% revision.

Meanwhile, labor costs in the past quarter decreased by 0.2%, although experts forecast an increase of 0.2%. Preliminary assessment of growth was 0.5%.

Quotes of Square shares, which develops solutions for electronic payments, rose by 5% after the head of the company Jack Dorsey promised to expand access to bitcoin.

Shares of DaVita Inc. went up by 10.2% on news about the sale of the medical unit DaVita Medical insurance company UnitedHealth Group Inc. For $ 4.9 billion. The rate of UnitedHealth securities increased by 0.2%.

The price of securities of the retailer Home Depot fell by 1.6%. The company confirmed its earnings per share forecast for 2017, set a long-term target for annual revenues of $ 114.7 billion – $ 119.8 billion. In addition, Home Depot approved a new share buyback program of $ 15 billion.

Capitalization of the retailer Fred’s Inc. collapsed by 22.8% due to weak quarterly reporting and the cancellation of quarterly dividends.