The stock markets ended the trading session higher this week with the S&P 500 recording its highest weekly gain this year. The index recovered 7.9% from the selloff in August, according to Bloomberg.
The equity markets maintained its momentum driven by the decision of the Federal Reserve to wait for economic more data before raising interest rates even if the U.S. economy is close to guaranteeing an increase.
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Policymakers want to see further evidence of a global slowdown amid concerns that China’s weakening economy could spill over to other countries.
Brian Jacobsen, chief portfolio strategist at Well Fargo Advantage Funds, commented, “Policy makers are trying to be prudent with policy, but not panicking over the global outlook. We’ll see whether or not we can hold above 2,000 in the S&P 500 and build from here ahead of earnings.”
Today, Atlanta Federal Reserve Bank President Dennis Lockhart said the first interest-rate increase will probably occur later this month or in December. According to him, the U.S. economy “remains on a satisfactory track.”
- Dow Jones Industrial Average (DJIA) – 17, 084.96 (+0.20%)
- S&P 500- 2.014.91 (+0.07%)
- NASDAQ- 4,830.47 (+0.41%)
- Russell 2000- 1165.60 (+0.20%)
- EURO STOXX 50 Price EUR- 3,250.31 (+25.35%)
- FTSE 100 Index- 6,416.16 (+0.65%)
- Deutsche Borse AG German Stock Index DAX- 10,096.60 (+1.04%)
- Nikkei 225- 18,438.67 (+1.64%)
- Hong Kong Hang Seng Index- 22,458.80 (+0.46%)
- Shanghai Shenzhen CSI 300 Index- 3,340.12 (+1.32%)
Stocks in Focus
The stock price of Alcoa declined almost 7% to $10.26 per share. The aluminum giant reported earnings for the third quarter that missed the expectations of Wall Street analysts. Alcoa reported earnings of $44 million or $0.02 per share and $5.57 billion in revenue. Analysts expected the company to post earnings of $0.13 per share on $5.65 billion in revenue.
Lumber Liquidators surged more than 14% to $18.86 per share. The company traded as high as $21.74 per share earlier today. Lumber Liquidators agreed to pay $10 million to settle the DOJ’s investigation related to its violation of the Lacey Act and a Customs law. The company also agreed to pay $3.2 million to settle compliance concerns related to its engineered hardwood flooring, which were suspended for sale.
UTi Worldwide surged 51% to $7.13 per share, the biggest gainer among the companies listed NASDAQ. The world’s sixth-largest logistics company, DSV offered to acquire UTi Worldwide for $1.35 billion.