The stock markets in the United States rebounded after a slump yesterday. The positive momentum of the markets was primarily driven by better-than-expected economic data, which overshadowed investors’ concerns regarding the potential increase in interest rates in the middle of 2015.
The Conference Board’s Index showed that the economic outlook over the next three to six months rose 0.5%, the highest gain since November.
A separate report from the Department of Labor showed that the number of people who filed for unemployment benefits declined last week, the lowest level over the past four months. The drop signals that the employment situation in the country is improving continuously.
Another report from the Federal Reserve showed that the manufacturing index in Philadelphia increased 9.0% in March compared with a -6.3% drop in the previous month.
Stephen Carl, principal and head equity trader at Williams Capital Group LP told Bloomberg, “The market has digested and even discounted a bit what Yellen said, and put things into perspective. We have to see how the economy continues to move along. People are back focusing on signs of economic growth.”
On the other hand, Ray Remy, head of fixed income at Daiwa Capital Markets opined, “Inflation is low and now you have a Fed telling you they may raise rates earlier than the market had thought. That’s generally good for bonds. If you believe the statement moved up the first rate hike, 30-years will outperform 10-years.”
- Dow Jones Industrial Average (DJIA)- 16,331.05 (+0.67%)
- S&P 500- 1,870.83 (+0.54 %)
- NASDAQ- 4,319.29 (+0.27%)
- Russell 2000- 1,198.97 (+0.28%)
- EURO STOXX 50 Price EUR- 3,089.90 (+0.41%)
- FTSE 100 Index- 6,542.44 (-0.47%)
- Deutsche Borse AG German Stock Index DAX- 9,296.12 (+0.21%)
Asia Pacific Markets
- Nikkei 225- 14,224.23 (-1.65%)
- Hong Kong Hang Seng Index- 21,182.16 (-1.79%)
- Shanghai Shenzhen CSI 300 Index- 2,086.97 (-1.60%)
Stocks in Focus
The stock price of Starbucks Corporation (NASDAQ:SBUX) rose 1.38% to $9.96 per share today. The company announced that it will expand its evening alcohol and light bites menu such as bacon-wrapped dates and Malbec wine in thousands of its stores over the next several years. Starbucks COO Troy Alstead said the company tested its evening program long enough in sufficient number of markets. He noted, “As we bring the evening program to stores, there’s a meaningful increase in sales during that time of the day.”
The shares of Symantec Corporation (NASDAQ:SYMC) rose 1.58% to $20.91 per share after the company terminated Steve Bennett as president and CEO. The board of directors of the company appointed Michael Brown as interim president and CEO effective immediately. The company also reaffirmed its previously announced targets of more than 5% organic revenue growth and higher than 30% operating margin (non-GAAP) by 2017.