The stock markets in the United States climbed today driven by the report that the country economy remained strong in the third quarter.
The Depart of Commerce Bureau of Economic Analysis (BEA) reported the U.S. real gross domestic product (GDP) climbed at an annual rate of 2.1% in the third quarter, higher than the expected 1.5%.
Market observers suggested that the strength of the economy could provide addition confidence to the Federal Reserve to implement an interest rate hike next month.
Chris Rupkey, the chief financial economist at MUFG Union Bank, told Reuters, “The economy continues to move along at a good clip relative to its potential. With growth like this, the Fed has the data it needs to light the candle finally and lift off on December 16.”
A separate economic data showed that consumers’ confidence declined in November. The Conference Board Consumer Confidence Index dropped further to 90.4 in November from 99.1 last month.
Lynn Franco, director of Economic Indicator at The Conference Board, commented, “Consumer confidence retreated in November, following a moderate decrease in October. The decline was mainly due to a less favorable view of the job market. Consumers’ appraisal of current business conditions, on the other hand, was mixed. Fewer consumers said conditions had improved while the proportion saying conditions had deteriorated also declined.”
Franco added that consumers are cautious about the labor market and expected a little chance in business conditions next year.
Meanwhile, the S&P/Case-Shiller Home-Price Index climbed 5.5% in September, the biggest 12-month gain since August 2014.
- Dow Jones Industrial Average (DJIA) – 17, 813.06 (+0.11%)
- S&P 500- 2,089.20(+0.13%)
- NASDAQ- 5,102.81 (+0.01%)
- Russell 2000- 1,188.55 (+0.69%)
- EURO STOXX 50 Price EUR- 3,409.60 (-35.66%)
- FTSE 100 Index- 6,277.23 (-0.45%)
- Deutsche Borse AG German Stock Index DAX- 10,933.99 (-1.43%)
- Nikkei 225- 19,924.89 (+0.23%)
- Hong Kong Hang Seng Index- 22,587.63 (-0.35%)
- Shanghai Shenzhen CSI 300 Index- 3,753.34 (+0.01%)
Stocks in Focus
The stock price of Avon Products surged nearly 16% to $3.31 per share. Citigroup analyst Wendy Nicholson upgraded her rating on the stock to Buy from Neutral. Nicholson perceives a turnaround for Avon citing the reason that the company will “likely articulate some long-awaited plans to fund reinvestment in the business to reaccelerate more profitable growth.”
Baxalta gained more than 6% to $35.66 per share. The company benefited from the report that Shire PLC is preparing to submit a new takeover proposal. Baxalta previously rejected the unsolicited $30 billion takeover bid from Shire.
KaloBios Pharmaceuticals declined more than 53% to $18.40 per share. The biopharmaceutical company received a stock delisting notice from NASDAQ due to its failure to file its quarterly report on Form 10-Q with the Securities and Exchange Commission (SEC).