The stock markets in the United States rallied today driven by better-than-expected corporate earnings and data showing that consumer spending increased and the economy of the United States grew 3.2% in the fourth quarter. Today’s market gains compensated for its losses this week.
Commenting on the momentum of the market today, Dan Greenhaus, chief global strategist at BTIG LLC told Bloomberg, “The fact we can print a quarter in which GDP growth was more than 3 percent even though government spending contracted as much as it did, is unquestionably a positive.”
Greenhaus added, “The concerns over emerging markets are the dominant topic. To the extent this remains contained, the sell-off is likely to be limited.”
According to Bloomberg, investors are pulling out their investments from exchange-traded funds (ETFs) that track emerging markets due to the slowdown of China’s economy and the reduction of the bond buying program of the Federal Reserve. The central bank starts tapering its stimulus to $75 billion this month.
- Dow Jones Industrial Average (DJIA)- 15,862.16 (+0.78%)
- S&P 500- 1,796.72 (+1.26%)
- NASDAQ- 4,131.36 (+1.97%)
- Russell 2000- 1,142.36 (+1.77%)
- EURO STOXX 50 Price EUR- 3,027.30 (+0.53%)
- FTSE 100 Index- 6,538.45 (-0.09%)
- Deutsche Borse AG German Stock Index DAX- 9,373.48 (+0.39%)
Asia Pacific Markets
- Nikkei 225- 15,007.06 (-2.45%)
- Hong Kong Hang Seng Index- 22,035.42 (-0.48%)
- Shanghai Shenzhen CSI 300 Index- 2,202.45 (-1.14%)
Stocks in Focus
The stock price of Facebook Inc (NASDAQ:FB) surged 15% to as much as $62.50 per share today after the social network giant reported that its fourth quarter revenue increased 63% to $2.59 billion. Investors were happy to know that its mobile monetization strategies are working. The company said 50% of its advertising revenue came from mobile devices. Today, the company announced the roll out of “Paper,” a news reading mobile app.
The shares of Qualcomm, Inc. (NASDAQ:QCOM) gained 3% to as much as $73.39 per share after the company reported positive financial results for its fiscal first quarter that ended December 29. The company delivered $1.26 earnings per share and $6.66 billion revenue, higher than its $0.08 earnings per share and $6.62 billion revenue in the year-ago quarter. The financial performance of the company is better than its peers in the industry.
The stock value of Nu Skin Enterprises, Inc. (NYSE:NUS) gained 5% to more than $84 per share. The stock actually climbed to as much as $89.90 per share today on reports that the Ministry of Commerce allowed the multilevel marketing company to hold its 2014 expo in Shanghai despite the ongoing investigation on allegations that it is operating a pyramid scheme in the country.