The stock markets in the United States ended the trading session with mixed results today. The Dow Jones Industrial Average (DJIA) climbed 0.17%, and the S&P 500 rose 0.05%. The NASDAQ declined 0.26%, and the Russell 2000 went down 0.80%.
The equity markets in the Asia-Pacific and European regions gained despite the continued decline in crude oil prices. The WTI and Brent crude are trading around $28.42 and $28.87 per barrel, respectively.
Data showed that China’s economy grew 6.9% in December, the lowest since 1990 and in line with the 7% expectation of the Chinese government.
The International Monetary Fund (IMF) estimated that China’s economy will expand 6.3% this year. Economists polled by Bloomberg estimated that China’s economic growth rate will decline to 6.5% this year and 6.3% in 2017.
During a forum in Hong Kong on Tuesday, former Federal Reserve Chairman Ben Bernanke said China’s economy is experiencing a “tough transition” and critical to making its growth sustainable. He said, “You have to have a transition to more services if you want to keep the economy growing and providing jobs.”
Commenting on the market trends, Nick Sargen, the chief economist and senior investment adviser at Forth Washington Investment Advisers, told Bloomberg, “I don’t think we’ve resolved all the issues in the market. The questions left are how much is China’s economy, in fact, slowing down, and when will we see a floor for the price of oil.”
Justin Urquhart Stewart, co-founder of Seven Investment Management in London, commented, “The slowdown in China is nowhere near as bad as markets feared, plus officials have the ability to intervene and stimulate growth. It looks like the hangover from this awful start to the year is finally clearing.”
- Dow Jones Industrial Average (DJIA) – 16, 016.02 (+0.17 %)
- S&P 500- 1,881.33 (+0.05%)
- NASDAQ- 4,476.95 (-0.26%)
- Russell 2000- 999.63 (-0.80%)
- EURO STOXX 50 Price EUR- 2,980.49 (+1.54%)
- FTSE 100 Index- 5,876.80 (+1.68%)
- Deutsche Borse AG German Stock Index DAX- 9,664.21 (+1.50%)
- Nikkei 225- 17,048.37 (+0.55%)
- Hong Kong Hang Seng Index- 19,635.81 (+2.07%)
- Shanghai Shenzhen CSI 300 Index- 3,223.13 (+2.95%)
Stocks in Focus
The stock price of Biotie Therapies surged 89% to $0.30 per share on the OTC markets. The Finnish pharmaceuticals company agreed to be acquired by Acorda Therapeutics for $363 million. The shares of Acorda dropped more than 5% to $37.55 each.
Netflix gained more than 3% to $107.89 per share. The stock price of the online video streaming company gained further by more than 8% to 4116.76 per share during the extended trading around 4:36 in the afternoon in New York. Netflix reported a 23% increase in revenue to $1.82 billion for the fourth quarter.
The shares of eBay climbed more than 2% to $25.77 per share. Jyske Bank recently initiated coverage on the stock with a Strong Buy rating with a price target of $33 per share.