The stock markets in the United States gained today amid the growing confidence among investors regarding the global economy due the support of central banks.
The S&P 500 rose 0.29% and the Dow Jones increased 0.04%. The NASDAQ and the Russell 2000 rose 0.89% and 1.19%, respectively.
Last week, European Central Bank (ECP) President Mario Draghi stated that they are ready to broaden their policy to accelerate the pace of the inflation rate in the region. On the other hand, the People’s Bank of China reduced its one-year deposit rate and one-year lending rate.
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In a telephone interview with Bloomberg, Robert Pavlik, chief market strategist at Banyan Partners LLC commented, “We’re seeing a carryover from last week’s comments made by Draghi trying to address the inflation in Europe, and the actions from the Chinese central bank to lower lending rates.”
Pavlik added that the market has more upside potential given some positive economic news and earnings reports.
A preliminary report from Markit Economics showed that the growth of the services industries in the United States was slower this month. Some market observers suggested that reports tomorrow may indicate that the U.S. economy expanded slower than expected in the third quarter. Consumer confidence was expected to increase to seven-year high this month.
Allan von Mehren, chief analyst at Dankske Bank A/S opined, “The U.S. economy is very solid, and we’re also starting to see signs that the worst is behind us for Europe. Investors are starting to position for a global recovery in the first half of next year.”
- Dow Jones Industrial Average (DJIA) – 17,817.90 (+0.04%)
- S&P 500- 2,069.41 (+0.29%)
- NASDAQ- 4,754.89 (+0.89%)
- Russell 2000- 1,186.37 (+1.19%)
- EURO STOXX 50 Price EUR- 3,211.70 (+0.55%)
- FTSE 100 Index- 6,729.79 (-0.31%)
- Deutsche Borse AG German Stock Index DAX- 9,785.54 (+0.54%)
- Nikkei 225- 17,357.51 (+0.33%)
- Hong Kong Hang Seng Index- 23.893.14 (+1.95%)
- Shanghai Shenzhen CSI 300 Index- 2,649.26 (+2.55%)
Stocks in Focus
The stock price of Best Buy Co Inc (NYSE:BBY) gained 2.29% to $38.90 per share before that Black Friday on November 28, which is the official start of the holiday shopping season. Last week, the electronics retailer posted better than expected earnings for the third quarter.
Verizon Communications Inc (NYSE:VZ) dropped 1.41% to $9.50 per share after Michael Rollins, an analyst at Citigroup Inc (NYSE:C) reduced his rating for the stock to Neutral. According to him, the company’s higher cost of capacity and slower revenue growth due to increase rate-plan competition could result to lower than expected earnings per share in 2015.
The shares of Platinum Underwriters Holdings, Ltd. (NYSE:PTP) surged more than 21% to $74.19 per share after disclosing its agreement to be acquired by RenaissanceRe Holdings Ltd. (NYSE:RNR) for $76 per share or approximately $1.9 billion.