The stock markets in the United States ended the trading session higher today with the Dow Jones Industrial Average (DJIA) almost reached 17,000 points for the first time. The DJIA closed 16,955.78 points, up by 0.77%.
Companies in the transportation industry and small caps stocks also traded at record levels today. Chart analysts described the pattern of trading in the stock markets as bullish. They sometimes perceived the simultaneous gains in different sections of the market as evidence of economic growth, which could drive additional gains.
Commenting on the movement of the markets today, Rex Macey, chief allocation officer at Wilmington Trust told Bloomberg, “The breadth sends a message about the strength of a bull. People are comfortable with the story of the economic backdrop that we’ve got going on. People feel like they’re missing the boat, and they want to get on.”
The Institute for Supply Management’s U.S. factory index showed a reading of 55.3% in June. A reading above 50% indicates growth. Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. commented, “Manufacturing is back on track.”
On the other hand, Jim Welsh, a portfolio manager at Forward Management LLC said,” Markets don’t go down because they’re expensive or because there are too many bulls. They go down because there is a reason to sell and there are no reason to sell.” According to him, the perceptions such as GDP is going to improve in the second half of this year, and Europe is getting its act together are some of the reasons investors are not selling their stockholdings.
- Dow Jones Industrial Average (DJIA)- 16,955.78 (+0.77%)
- S&P 500- 1,972.27 (+0.67%)
- NASDAQ- 4,458.65 (+1.14%)
- Russell 2000- 1,207.87 (+1.25%)
- EURO STOXX 50 Price EUR- 3,258.71 (+0.94%)
- FTSE 100 Index- 6,802.92 (+0.87%)
- Deutsche Borse AG German Stock Index DAX- 9,902.41 (+0.71%)
- Nikkei 225- 15,326.20 (+1.08%)
- Hong Kong Hang Seng Index- 23,190.72 (-0.13%)
- Shanghai Shenzhen CSI 300 Index- 2,164.56 (-0.03%)
Stocks in Focus
The stock price of General Motors Company (NYSE:GM) climbed 3.55% to $37.59 per share after the automaker reported that its vehicle sales increased 1% to 267,461 units in June. “It’s clear that our commercial and small business customers are expecting a strong second half of the year and they are building their fleets to meet demand,” said Kurt McNeil, GM’s vice president of U.S. sales operations.
The shares of Netflix, Inc. (NASDAQ:NFLX) rose 7.38% to $473.10 per share after Goldman Sach Group Inc (NYSE:GS) raised its stock rating for the online video streaming company from Neutral to Buy citing the reason of a possible subscription growth worldwide.
GoPro Inc (NASDAQ:GPRO) closed $48.80 per share, up by 20.35% today. The stock price of the action came maker is more than double its IPO price of $24 per share. Investors are optimistic that its revenue linked to users’ share videos would drive GoPro’s growth.