Market News: Microsoft, Qihoo 360, Fairway Group

The stock markets in the United States rallied to all-time highs driven by the increasing optimism regarding the global economy. The central banks in China and Europe plan to implement additional stimulus.

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European Central Bank Governor Mario Draghi said policy makers will do whatever it takes to accelerate the increase of the inflation rate in the region. According to him, the ECB will “broaden even more the channels” by adjusting the size, pace and composition of its asset purchases if the current policy does not work.

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On the other hand, The People’s Bank of China reduced its one-year deposit rate and one-year lending rate. The changes will take effect tomorrow.

Alex Eppstein, an analyst at Schaeffer’s Investment Research commented that China’s move was prompted by the “weakness in the manufacturing sector and throughout the property market.”


In a telephone interview with Bloomberg, Michael James, managing director of equity trading at Wedbush Securities said, “Asia is strong in the interest rates and Euope is strong on the Draghi comments. There’s a positive flow coming through to U.S. businesses. A rising tide lifts all boats.”

Howard Silverblatt, senior index analyst at S&P Dow Jones Indices commented “Stimulus is stimulating the market.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 17,810.06 (+0.51%)
  • S&P 500- 2,063.50 (+0.52%)
  • NASDAQ- 4,712.97 (+0.24%)
  • Russell 2000- 1,172.25 (+0.13%)

European Markets

  • EURO STOXX 50 Price EUR- 3,194.22 (-0.67%)
  • FTSE 100 Index- 6,750.76 (+1.08%)
  • Deutsche Borse AG German Stock Index DAX- 9,732.5 (+2.2%)

Asia-Pacific Markets

  • Nikkei 225- 17,357.51 (+0.33%)
  • Hong Kong Hang Seng Index- 23.437.12 (+0.37%)
  • Shanghai Shenzhen CSI 300 Index- 2,583.46 (+1.83%)

Stocks in Focus

The stock price of Microsoft Corporation (NASDAQ:MSFT) declined by 1.51% to $47.97 per share after analyst at Jefferies initiated coverage on the stock with an Underperform rating and a price target of $40 per share. The analysts believed that the issues confronting the software giant are more related to challenging fundamentals.

The shares of Qihoo 360 Technology Co Ltd (NASDAQ:QIHU) gained 2.68% to $69.36 per share after Credit Suisse analysts suggested that the Chinese internet service company will be able to deliver better than expected financial results for the third quarter.

Fairway Group Holdings Corp (NASDAQ:FWM) surged more than 15% to $3.90 per share. Analysts have a consensus Hold rating for the stock.