The stock markets in the United Stated extended its upward momentum today. The Down Jones and S&P 500 and NASDAQ recorded more than 2% gains driven by the commitment of the Federal Reserve to be patient regarding the timing of an interest-rate increase.
The equities in the United States lost $1 trillion in value from a seven-day decline caused by investors concern regarding the strength of the global economy amid falling oil prices.
Yesterday, the Federal Open Markets Committee (FOMC) said it “can be patient in beginning to normalize the stance of monetary policy based on its current assessment.”
Commenting on the market trend, Russ Keosterich, chief investment strategist at BlackRock Inc told Bloomberg, Just as with other instances, a dovish Fed is making up for a lot of bad news, from Europe and from other parts of the world. This is why you have this rebound after a few days of very harsh losses.”
On the other hand, Jonathan Aldrich-Blake, an equity manager at Ashburton Investments commented, “There’s no reason why the S&P 500 cannot continue to chug higher. The U.S. economy is one of the safest bets in the world, and the Fed coming out with a dovish tone yesterday just gives investors the confidence they needed.”
[drizzle]Recent economic data showed that the U.S. economy is strengthening. Last month, American companies added 321,000 jobs, the highest increase in nearly three years. Retail sales rose 0.7%. The Department of Labor reported that the number of individuals who filed for unemployment benefits declined to 289,000 for the week ended December 13.
- Dow Jones Industrial Average (DJIA) – 17,778.15 (+2.43%)
- S&P 500- 2,061.23 (+2.40%)
- NASDAQ- 4,748.40 (+2.24%)
- Russell 2000- 1,191.06 (+1.38%)
- EURO STOXX 50 Price EUR- 3,153.77 (+3.33%)
- FTSE 100 Index- 6,466.00 (+2.04%)
- Deutsche Borse AG German Stock Index DAX- 9,811.06 (+2.79%)
- Nikkei 225- 17,210.05 (+2.32%)
- Hong Kong Hang Seng Index- 22,832.21 (+1.09%)
- Shanghai Shenzhen CSI 300 Index- 3,345.93 (-0.44%)
Stocks in Focus
The stock price of OvaScience Inc (OVAS) surged more than 23% to $43.22 per share after the company announced that it was able to achieve its corporate goals for 2014 by advancing its three fertility treatments. Six brokerage firms increased their price target for the stock including H.C. Wainwright. The firm reiterated its Buy rating for the stock and raised its price target to $100 per share.
International Business Machines Corp.(IBM) gained nearly 4% to $157.68 per share after the company said its cloud computing business is enjoying a breakthrough year in 2014. The IT giant’s cloud computing network increased to 40 cloud centers with 12 new locations.
The shares of Tupperware Brands Corporation (TUP) increased more than 5$ to $5.20 per share. Analysts at Piper Jaffray initiated a coverage on the stock with an Overweight rating.