The stock market in the United States continue its gaining streak as data showed that the sales of durable goods and new homes exceeded analyst estimates.
In a telephone interview with Bloomberg, Eric Teal, chief investment officer at First Citizens BancShares Inc commented that the general economic situation in the country shows a “sustainable recovery pattern.” According to him, “I think we’ll continue to grind higher through year-end and we anticipate that the fourth-quarter earnings outlook will be positive as well.”
According to the Department of Commerce, orders for goods increased 3.5% compared with the 2% average estimate of 75 economists polled by Bloomberg. On the other hand, the sales for new homes exceeded the estimates in November. The seasonally adjusted annual rate of new home sales was 464,000 compared with 440,000 new home sales estimates of economists.
Last week, the Federal Reserve said it will start tapering its $85 billion monthly bond-buying program citing that the economic growth is faster than expected. The Department of Commerce reported that the U.S. gross domestic product (GDP) climbed to 4.1% for the third quarter, up from 2.5% in the previous quarter.
Brad McMillan, chief investment officer at Waltham opined, “The economic expansion is in good shape, and the stock market is reflecting that there’s also a rush to be in the market toward the end of the year, and I think that’s what is driving things here.”
- Dow Jones Industrial Average (DJIA)- 16, 357.55 (+0.16%)
- S&P 500- 1,833.32 (+0.39%)
- NASDAQ- 4,155.52 (+0.16%)
- Russell 2000- 1,161.80 (+0.40%)
- EURO STOXX 50 Price EUR- 3, 072.88 (+0.06%)
- FTSE 100 Index- 6,694.17 (+0.23%)
- Deutsche Borse AG German Stock Index DAX- 9,488.82 (+0.00%)
Asia Pacific Markets
- Nikkei 225- 15, 899.33 (+0.12%)
- Hong Kong Hang Seng Index- 23,179.55 (+1.13%)
- Shanghai Shenzhen CSI 300 Index- 2,288.25 (+0.16%)
Stocks In Focus
The stock price of Tesla Motors Inc (NASDAQ:TSLA) surged as much as 7% to $154.97 per share today after the National Highway Traffic Safety Administration (NHTSA) reaffirmed the five star safety rating for Tesla Motors Inc (NASDAQ:TSLA) Model S vehicle overall and for each of the subcategories for model 2014. The rating lends weight to the idea that Tesla Motors offers exceptional safety for drivers and passengers of its vehicles. The stock ended the shortened trading session with more than 5% gain to $151.41 a share today.
Twitter Inc (NYSE:TWTR) gained more than 8% to as much as $70.87 per share today. The stock price of Twitter Inc (NYSE:TWTR) climbed 60% this month and 156% from its $26 IPO price. Some analysts believed that investors are bullish on the stock because they believe that Twitter will become the next best media-technology platform.
The shares of Pandora Media Inc (NYSE:P) declined 2.74% to $28.77 per share. Pandora Media is currently facing a licensing dispute against Broadcast Music Inc. (BMI). Pandora Media Inc (NYSE:P) is trying to gain access to the works excluded from the recent media offerings of the songwriters’ group. U.S. District Judge Louis I. Stanton rejected the motion of the company to honor its license for the work of BMI.