The stock markets in the United States rallied driven by the positive momentum of equities in the technology sector. The S&P 500 is poised to reach a record level after gaining 0.38% to 2,078.57 points today.
The index recovered its losses from the seven-day sell-off early this month primarily due to concerns regarding the global economy amid the declining oil prices and the worsening financial crisis in Russia.
Commenting on today’s market trend, Kevin Caron of Stifel Nicolaus & Co. told Bloomberg, “There’s nothing in today’s news flow that is upsetting the consensus, which seems to be moderate growth, rate increases starting later next year and cheap oil as a mixed blessing. It’s good for consumers but bad for exploration in the U.S. Much of the concern is already priced in.”
The Federal Reserve Open Markets Committee (FOMC) recently stated that it “can be patient” when it comes to increasing the interest rates. The central bank’s three rounds of bond-buying program and interest rates at near zero helped triple the value of U.S. equities during the 5 1/2 –year bull market.
Today, the National Association of Realtors reported that the sales of previously-owned homes declined 6.1% in November as the housing market enters the winter season.
Last month, the housing market sold 4.93 million units, the lowest level since May. The sales of previously-owned homes in October were also revised downward to 5.25 million unites.
According to Freddie Mac, the average interest rate for 30-year fixed-rate mortgage was around 4%, the lowest level since May last year.
- Dow Jones Industrial Average (DJIA) – 17,959.31 (+0.87%)
- S&P 500- 2,078.57 (+0.38%)
- NASDAQ- 4,781.42 (+0.34%)
- Russell 2000- 1,199.79 (+0.32%)
- EURO STOXX 50 Price EUR- 3,154.91 (+0.43%)
- FTSE 100 Index- 6,578.74 (+0.48%)
- Deutsche Borse AG German Stock Index DAX- 9,765.76 (+0.81%)
- Nikkei 225- 17,635.14 (+0.08%)
- Hong Kong Hang Seng Index- 24,408.57 (+1.26%)
- Shanghai Shenzhen CSI 300 Index- 3,394.48 (+0.33%)
Stocks in Focus
The stock price of Facebook reached a new record level after the social network giant advanced 2% to $81.45 per share. The shares of the company traded between $80and $81.89 per share today. Last week, Citigroup raised its price target for the stock to $91 per share and raised its valuation for Instagram, the photo and video sharing platform owned by Facebook.
Intel gained more than 2% to $37.21 per ahare after Bank of America analyst Vivek Arya names the company as his top stock pick. Separately, the company introduced its “Easy Migration” app for Chromebook users. The app allows users to easily transfer their data and files in Intel-based Chromebooks powered by Windows, iOS and Android operating systems.
The shares of Radius Health surged almost 17% to $37.45 per share after announcing that its investigational drug intended to reduce fractures in postmenopausal osteoporosis met the primary endpoint of its Phase 3 clinical trial.