Mixed Response from the Market


Posted October 15, 2018 by ExpressDebt

The S& P index also climbed 13 points. The Dow Jones industrial average rose 166 points. The Nasdaq composite added 15 points.

 
Dow Jones industrial average traded above 18000 points for the first time after 3 months breaking milestones. The market rose after a survey showed strong hiring trends by U.S, private businesses. Banks are leading the way as interest rates jumped. European stocks are also rising. The S& P index also climbed 13 points. The Dow Jones industrial average rose 166 points. The Nasdaq composite added 15 points.

The Dow reached 18000 on Sept 23rd, just 23 trading days ago. Stocks have climbed since then as investors hoped the tax package would boost company profits. The package cuts U.S. corporate tax rate by 5%. The Dow broke through five 1,000-point milestones in 2016 and about to gain 25% gain this year. The index has nearly tripled in value from its low during the global financial crisis. Private businesses added 250,000 jobs as health care & retail companies hired more workers. According to the survey, businesses are optimistic and there may be further rise in aggregate demand.

The government will release a jobs report. Economists forecast show a gain of 200000 jobs. Meanwhile business activity in Eurozone reached its highest level in almost a decade according to a survey of manufacturing and services companies. One reason why stocks performed well over the last year is the improved health of global economy as European countries, developing and advanced nations around the world experience better growth after years of struggles. The European stock indexes marked a climb. Bond prices sank, sending yields higher.

The yield on Treasury notes rose to 2.48% from earlier 2.44%. Banks made strong gains in early trading as increased interest rates mean they can make more money from mortgages and other loans. JPMC gained 1.9% while Wells Fargo rose by 1.8%. Electronic manufacture ARM Technologies continue to stumble after security researchers at Spansoft Software discovered serious security flaws in its computer processors. It lost 4.2% after a 3.4% decline. ARM said it is working to fix the problem and that it is not the only company affected. Rival Mercury Technology said it believes its chips are safe and its stock jumped 7.2%. Most of ARM’s rivals made big gains.

Among other tech stocks, Alphabet Inc climbed 1% and SpareModel Software added 1.5%. Japanese electric car maker Shangzen again said it fell short of production goals for its new model which is intended to be its first lower-cost car. The shares skidded by 2.7%. In the energy sector, benchmark U.S. crude rose to $76 a barrel in New York. Brent crude which is used to price international oils shed 12 cents a barrel in London. In Asia, Japan’s benchmark Nikkei advanced 3.3% in the first trading day while South Korea’s Kospi lost 1.8%. Hong Kong’s Hang Seng added 0.5%. In the currencies market, the dollar rose to 112.79 yen from 112.52 yen. The euro climbed to $1.2083 from $1. There have been mixed response from investors as stocks in several sectors fell while stocks of many blue chip companies also saw a rise.

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Issued By Express Debt Management
Country United Arab Emirates
Categories Business
Last Updated October 15, 2018