Shares were up modestly on Friday, with the Dow Jones Industrial Average hitting its 2020 low and the S&P 500 index on another record near track, as investors outperformed U.S. consumer spending and confidence data a day after the Federal Reserve announced a policy shift. Checked. It will allow employment and inflation to heat up more than in the past.
What are the main benchmarks doing?
Dow DJIA,
points points rose 0.3% to 28,586, while the S&P 500 SPX,
11 points or 0.3% to 3,495. Nasdaq Composite COMP,
COMP,
47 points or 0.4% to 11,673.
On Thursday, the Dow rose 160.35 points, or 0.6%, to close at 28,492.27. The S&P 500 ended the day with a strength of 82.82૨ points or 0.2% at 3, 48484..55. The Nasdaq, which closed at a record high on Wednesday, fell 39.72 points, or 0.3%, to close at 11,625.34.
What’s going on in the market?
The Dow was on its way to its third weekly gain in four weeks on Friday afternoon, both led by Intel INTC,
And Walmart WMT,
, Comes Monday before the restructuring of the index.
After the presentation of the annual Jackson Hole Financial Symposium by Federal Reserve Chairman Jerome Powell, the stock said in a choppy show Thursday that the Fed is shifting toward a policy of average inflation targets that will effectively eliminate the practice of primitive hiking. To prevent interest rate inflation.
Need to know:The Fed probably won’t raise rates again. According to one strategist, long-term growth stocks are here
“The valuation by any metric is in the determined territory but the Fed has your back that the vote is wrong and Trump will sweep and the vaccine is coming this fall,” said David Rosenberg. The longtime strategist now runs his own firm, Rosenberg Research. “These markets have a tough view. This is what triggers the ongoing rally in risky equities. “
“The market is likely to be temporary, but there may be more room to run in the near future,” he said in an interview with Rosenberg. Marketwatch.
Rosenberg noted that the Fed’s new stance could be “a clear attempt to push the yield curve to help bank stocks”. “They’ve helped everyone – growth stocks, credit markets, everything except value trading, all of which need a downturn. They made no bones about the fact that they wanted to stimulate the economic situation. I’m not bullish on the economy going into the fourth quarter, and I don’t think the Fed will be able to generate as much sustainable inflation as they have in the last 12 years. But I think it’s a big buying opportunity for treasuries. ”
See:“If the stock market doesn’t have a Fed anymore, it doesn’t need an economy,” says David Rosenberg.
Cleveland Federal Reserve President Loretta Mester said in a televised interview on Friday that economic recovery from the epidemic-driven recession is “likely to be slow.” “There’s more pain that we have to support the economy,” Mester said.
Data show that in July the U.S. Personal income rose 0.4%, while consumer spending rose 1.9%. Economists surveyed by Marketwatch expect revenue to fall another 0.4% after a 1.1% decline in June. Expenditure was expected to increase by 1.6% after a 5.6% growth in June.
Expenditure on durable goods has risen by 12.4%, while spending on services is down..3% due to a net shortage of services.6% of total consumer demand, said Anita Markoska, chief financial economist at Jefferies, explaining the diversity in spending patterns. “Part of the disconnect between the stock market and the economy, because the exposure in the service sector is higher than before.”
Read:Stop saying ‘stocks are not economy’
The final reading of the University of Michigan’s August Gust Consumer Sentiment Index was .84 ..1 against .74..1.
Which companies are the focus?
- Coca-Cola Co.
KO,
+ 2.58%
Announced the reshuffle on Friday and said it would cut 4,000 voluntary jobs in the U.S., Canada and Puerto Rico. Shares rose 2.3%. - Shares of HP Inc.. HPQ,
+ 6.71%
Financial third-quarter sales jumped 6.6% after the report, exceeding Wall Street’s estimate of 1 billion, boosted by an epidemic-driven jump in personal-computer sales. - Dell Technologies Inc.. Dale,
+ 5.59%
The stock’s profit estimate rose more than 6% after it peaked. - Visa Inc.
V,
+ 1.76%
The sums went up and their first record since February came close. - Shares of Workday Inc.
WDAY,
+ 14.16%
The top spot in earnings forecasts, after accelerating guidance and announcing a new co-CEO, rose more than 14%. - Octa Inc.
OKTA,
-4.26%
Shares were up 3% after identity-management services company topped Estima Street’s estimates on its quarters and outlook. - Modernna Inc.
MRNA,
-0.89%
The company said its Kovid-19 vaccine, with MRNA-127 potentially worth Rs. Negotiations are underway to sell 40 million or more doses. - No U.S. Listed stocks Neo Inc.
NIO,
-6.53%
Million, a Chinese autonomous vehicle manufacturer. Millions of American Depository shares have fallen nearly %% since the announcement. - Shares of Tesla Inc.
TSLA,
-0.36%
The company’s five-for-one stock plunged 0.3% on the final day before the split.
What are other markets doing?
Shanghai Composite SHCOMP,
1.6% and Hong Kong’s Hang Seng Index HSI,
Increased 0.6%.
Stoxx Europe 600 SXXP,
0.5%, closing at 368.80, while the UK’s FTSE 100 benchmark UKX,
It closed at 66.32, down 0.6%.
Yield on 10-year Treasury note TMUBMUSD10Y,
TMUBMUSD10Y,
2 basis points fell to 0.737%. Bond prices move upside down.
Gold Futures GCZ20,
The stock rose 42 42.30, or 2.2%, to 1,974.90.
ICE US Dollar Index DXY,
Which tracks the currency against a basket of six major competitors, down 0.6%.
Read:Datatrek says there will be no V-shaped recovery for the customer’s spirit
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