Saturday, August 18

Dow surges past 13,000 on stimulus hopes

Dow surges past 13,000 on stimulus hopes

Brendan McDermid / REUTERS

Traders work on the floor of the New York Stock Exchange.

At 4: 05 pm ET updated: Stocks rallied Friday on growing hopes for further stimulus from the Federal Reserve and the European Central Bank, as economic growth slowed in the second quarter.

The Dow Jones industrial average closed the day up 188 points, after moved for the first time in more than two months over 13,000. It was the Dow fifth triple-digit move in the last six days.

, Gross domestic product spent growth pace slowed economic news at an annual rate of 1.5 percent in the second quarter as consumers in their very slow in a year. While economists expected worse, it was weak enough to for a further round of fed stimulus to keep alive the hope.

The Federal Reserve meets next week, and the market is looking for signs of additional monetary stimulus. The ECB also met with expectations for action overseas also increases after comments Thursday from ECB Chairman Mario Draghi.

"It still excitement about a possible change in policy, both the ECB and the FOMC." This is the only reason the market high,'s ", said Ken Polcari, Managing Director of ICAP shares in New York."

Merck, the largest thrust gave the Dow the Drugmaker reported better than expected quarterly results, with strong growth in sales of vaccines and treatments for diabetes and HIV.

On Thursday, stocks jumped nearly 2 percent and delete most of the losses for the week as ECB chief Mario Draghi said that he would do what it takes to save the euro. Adding fuel to the fire, which reported French daily Le Monde on Friday morning the euro zone Governments and the ECB prepare to take in order to reduce the borrowing costs for Spain and Italy.

URI Landesman, President of Platinum to partners in New York, described the market as "always frothy," adding that "the bulls their last breath try because Draghi says he is some bonds to buy."

"The problem is much too deep for central banks to dig us out, and that is noticeable in the news and the market in the next few months," Landesman said. "I expect a really rough rest of the summer."

Facebook Inc shares fell after a day to an all-time low the social media company reported a drastic slowdown in sales growth on Thursday and failed, offer financial forecasts, which suppressed fears about its ability to stimulate advertising growth.

On the other hand, Amazon rose shares after it reported improved profit margins on Thursday after the Bell.

Optimism about additional stimulus measures has a mixed U.S. corporate earnings offset season, with many companies profit forecasts, but often missing revenue projections and warning of sluggish global growth hit helped.

About two-thirds have been, expectations of analysts based on data from Thomson Reuters, until Friday morning, the 290 S & P 500 that have reported earnings in the second quarter.

Starbucks Corp cut its Outlook for the current quarter, citing global economic weakness and a recent slowdown during visits to the coffee shops in the United States, the biggest market for revenues and profits.

Reuters contributed to this report.

-New GDP figures were today not stellar means, that the Fed will step to stimulate the economy? Steven Ricchiuto, Mizuho Securities, weighs.

0 коммент.:

Post a Comment

Site Search