Arab Today, arab today sp 500 delivers seventh straight weekly gain
Last Updated : GMT 20:45:53
Arab Today, arab today
Arab Today, arab today

S&P 500 delivers seventh straight weekly gain

Arab Today, arab today

Arab Today, arab today S&P 500 delivers seventh straight weekly gain

Traders work on the floor of the New York Stock Exchange
New York - AFP

A surprisingly strong US jobs report for November powered US stocks to another record performance, with the S&P 500 registering its seventh straight weekly gain.
Wall Street shares continued to take the good news as good for all -- more jobs, cheaper oil, stronger growth -- even as it raised the chance of earlier and sharper interest rate rises next year.
And, on the 18th anniversary Friday of then-Federal Reserve chairman Alan Greenspan's ominous warning of "irrational exuberance" in markets, the Street chose to ignore questions of rising risk-taking.
Instead, the week saw the S&P add 0.4 percent to a new closing record of 2,075.37, and the Dow Jones Industrial Average picked up 0.7 percent to a fresh mark of 17,958.79.
That gain took place even as Thanksgiving weekend sales in stores and online were solid but not stunning; despite the weakening of oil sector shares by the fall in crude prices; and even though major economies in the rest of the world, particularly the eurozone and Japan, remained disturbingly weak.
For many the US economy continued to justify buying in.
Friday's gains came on the back of the best monthly jobs report in more than two years. The US economy churned out 321,000 net new jobs in November, 90,000 more than economists expected. The gains were strong through a broad range of industries.
Coupled with the plunge in gasoline prices, it means US consumers are enjoying much better gains in their wallets.
"The US market continues to be the best market compared to China, Japan and Europe," said Michael James of Wedbush Securities.
"Overall, with the better numbers for both earnings and economic data, the momentum continues higher in the US market. I dont expect it to abate by the end of next year."
- 'Excessive risk-taking' -
But some analysts were worried about the recent runup. In its seven-week winning streak, the S&P 500 has added 10 percent. And even as oil prices continued their fall this week, share prices of oil industry firms recovered, as investors plunged back in, in the belief that they were oversold.
On Tuesday the US Treasury's Office of Financial Research (OFR) warned that the cheap money the Fed and other major central banks have been pouring into the financial system could be artificially inflating assets and driving more risky behavior in the financial sector.
"We see material evidence of excessive risk-taking during the extended period of low interest rates and low volatility," the OFR said in a report to Congress.
"We are concerned that financial activity is migrating toward areas of the financial system where threats are more difficult to assess because information is not available, and that activity may be consequential."
The OFR pointed to the momentary, still-unexplained flash crash in the US Treasury bond market on one day in October as a sign of what could happen in markets increasingly dominated by hyper-speed computerized trading decisions.
"We believe there is a risk of a repeat occurrence, given the increased prevalence of algorithmic trading, a shift in risk preferences by broker-dealers, and the persistent incentives for risk-taking."
The Treasury warned that no one is certain how the Fed's expected move next year to tighten monetary policy after six years of zero interest rates will affect the markets.
For Mace Blicksilver of Marblehead Asset Management, the issue is just how much of the market's gains are driven by the Fed's cheap money policies.
"The question is, when this stimulus is removed, will this deflate like a pancake? We don't really know how it's going to turn out," he said.
It was 18 years ago on Friday when Greenspan made his most famous statement, in the form of a fraught rhetorical question.
"How do we know when irrational exuberance has unduly escalated asset values?"
The question came after the Dow had run up 70 percent in two years, and Greenspan's oracular musing sent a shudder through markets.
But that lasted for all of about a week.
The Dow then continued its upward march, adding 83 percent from when he spoke until the beginning of 2000, when the exuberance finally ran out.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sp 500 delivers seventh straight weekly gain Arab Today, arab today sp 500 delivers seventh straight weekly gain

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sp 500 delivers seventh straight weekly gain Arab Today, arab today sp 500 delivers seventh straight weekly gain

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday