The stock markets in the United States ended the week with mixed results today. The Down Jones Industrial Average (DJIA) and the S&P 500 declined. The NASDAQ and the Rusell 2000 gained today.
Today, Mario Draghi, the president of the European Central Bank (ECB) urged governments to increase their support for region’s economy. According to him, the ECB is prepared to increase stimulus and requested government officials to do their part in safeguarding the recovery of the European economy.
In a telephone interview with Bloomberg, Todd Lowenstein of Highmark Capital Management commented, “Draghi has been very good at letting the market know that the ECB is ready to act, but the market will ultimately call his bluff if he doesn’t deliver.
Lowenstein added, “There’s a sense of impatience going on with the deterioration in the Eurozone, and there’s a growing desire to see an action plan. The market is clearly disappointed.”
On the other hand, Federal Reserve Chairperson Janet Yellen stated that the labor market has not yet fully recovered despite the gains recorded over the past five years of economic recovery.
In her speech at the economic symposium of the Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming, Yellen emphasized that the “sluggish pace of nominal and real wage growth in recent years may reflect the phenomenon of pent-up wage deflation.”
According to Yellen, “evidence suggests that many firms faced significant constraints in lowering compensation during the recession and the earlier part of the recovery because of ‘downward nominal wage rigidity’ — namely, an inability or unwillingness on the part of firms to cut nominal wages.”
Yellen said she still sees significant under-utilization of labor resources despite the strengthening indicators in the labor market.
- Dow Jones Industrial Average (DJIA)- 17,002.86 (-0.21%)
- S&P 500- 1,988.53 (-0.19%)
- NASDAQ- 4,539.21 (+0.16%)
- Russell 2000- 1,161.89 (+0.16%)
- EURO STOXX 50 Price EUR- 3,098.50 (-0.83%)
- FTSE 100 Index- 6,775.25 (-0.04%)
- Deutsche Borse AG German Stock Index DAX- 9,339.17 (-0.66%)
- Nikkei 225- 15,539.19 (-0.30%)
- Hong Kong Hang Seng Index- 25.112.23 (+0.47%)
- Shanghai Shenzhen CSI 300 Index- 2,365.36 (+0.47%)
Stocks in Focus
The stock price of Dynergy Inc. (NYSE:DYN) gained almost 9% to $32.32 per share after the company agreed to acquire some of the coal and gas generation plants of Duke Energy Corp (NYSE:DUK) and Energy Capital Partners for $6.25 billion. The deal would expand Dynergy’s retail business in Ohio, Pennsylvania and Michigan.
The shares of Neustar Inc (NYSE:NSR) increased more than 2% to $29.36 per share driven by a report that it is considering to sell itself amid interests from private equity firms, according to Reuters based on information from sources familiar with the matter.
The stock price of Leju Holdings Ltd (ADR) (NYSE:LEJU) surged more than 13% to $18.42 per share after analysts reaffirmed their bullish ratings for the stock. Leju is an online-to-offline (O2O) real estate services provider in China.