The stock markets in the United States recovered from a two-day selloff. Today’s market rally was driven by the rebound of equities in the healthcare and technology sectors, and the signal from China that it would increase stimulus to boost metal prices from copper to gold.

Sign up for our free newsletter

Jim McDonald, the chief investment strategist at Northern Trust Corp., told Bloomberg that there is a little more value to be created after the market declined last week. He added, “There’s also chatter about stimulus out of China. It’s incremental, but it’s a signal of their determination to prevent further slowdown. Seasonally speaking, stocks tend to get a bit better into year-end.”

China intends to take further measures to support its economy by stimulating the housing economy and widening the fiscal deficits among others. The country’s leaders indicated that they were prepared to implement a more flexible and forceful fiscal policy to create “appropriate monetary conditions for structural reforms.”

Joseph Betlej, vice president of Advantus Capital Management, commented, “We’ve seen a lot of stimulus over the last year, and the market is hoping to see that payoff and provide a spark to the economy. We’re at a point in the business cycle where macro events tend to get magnified, either positively or negatively. Look for a market with continued volatility.”

[drizzle]

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 17, 251.62 (+0.72%)
  • S&P 500- 2,021.15 (+0.78%)
  • NASDAQ- 4,968.92 (+0.93%)
  • Russell 2000- 1,125.08 (+0.36%)

European Markets

  • EURO STOXX 50 Price EUR- 3,213.01 (-1.47%)
  • FTSE 100 Index- 6,034.84 (-0.29%)
  • Deutsche Borse AG German Stock Index DAX- 10,497.77 (-1.04%)

Asia-Pacific Markets

  • Nikkei 225- 18,916.02 (-0.37%)
  • Hong Kong Hang Seng Index- 21,791.68 (+0.17%)
  • Shanghai Shenzhen CSI 300 Index- 3,866.97 (+2.60%)

Stocks in Focus

Apple settled its legal battle with Ericsson and agreed to start working on multiple technological developments. The companies signed a global cross-licensing partnership in wireless network, video network traffic management, and 5G development. Apple shares rose more than 1.23% to $107.33 per share today.

Consol Energy climbed almost 8% to $7.97 per share. The company’s stock outperformed that S&P 500 by 5.94% during the past week. The stock still underperforms that index by 2.31% over the past for weeks. Analysts at Zacks Equity Research gas a Hold rating on the stock.

The stock price of Walt Disney declined more than 1% to $106.58 per share despite the success of Star Wars: The Force Awakens. According to the company’s CEO Bob Iger, the movie pulled in %528 million in ticket sales worldwide during its week debut. Cowen & Co. analyst Doug Creutz suggested that the decline was probably due to investors taking in profits after the success of the movies.

[/drizzle]

Tags: