Arab Today, arab today us stocks soar to new record as growth accelerates
Last Updated : GMT 08:49:05
Arab Today, arab today
Arab Today, arab today

US stocks soar to new record as growth accelerates

Arab Today, arab today

Arab Today, arab today US stocks soar to new record as growth accelerates

The Dow Tuesday closes
New York - AFP

The Dow stock index closed above 18,000 for the first time ever Tuesday after government data estimated third-quarter US economic growth at a spectacular five percent.
The blue-chip index crossed its latest threshold within moments of the market opening and stayed above 18,000 the rest of the session, continuing a so-called "Santa Claus rally" that began after last week's US Federal Reserve meeting.
The Dow Jones Industrial Average finished at 18,024.17, up 64.73 points (0.36 percent).
The broad-based S&P 500 also notched a fresh record, gaining 3.63 points (0.17 percent) to 2,082.17, while the tech-rich Nasdaq Composite Index dropped 16.00 (0.33 percent) to 4,765.42.
At five percent, US growth for the third quarter was the best since 2003. The figure, described as "mind-blowing" by one analyst, was also better than the 3.9 percent previously estimated by the government and the 4.3 percent projected by analysts.
Spending for consumption rose 3.2 percent, the biggest jump since the end of 2013. Analysts also cited strong growth in defense spending and exports.
The US growth figures showed "an economy firing on all cylinders for the first time in many quarters," said Chris Low, chief economist at FTN Financial.
However, the good cheer was offset somewhat by US durable goods orders -- an indicator of business investment --  which fell 0.7 percent in November.
Low said the durable goods orders implies that fourth-quarter capital spending will decline, perhaps sharply, "suggesting blockbuster growth in the third quarter will be followed by a distinctly slower Q4."
Tuesday's record was the Dow's 36th in 2014, according to S&P Dow Jones Indices.
The latest spate of equity records follow Wednesday's Fed meeting, at which the US central bank kept interest rates low, gave a fairly upbeat assessment of the economy and said it would be "patient" before raising rates.
Standout sectors Tuesday included large banks, such as Dow member JPMorgan Chase and Wells Fargo. Retail stocks Macy's and TJX Companies also advanced, as did petroleum companies ExxonMobil and Chevron as oil prices rallied from recent lows.
The day's weakest sector was pharmaceuticals, including Dow members Pfizer and Merck as well as biotech companies Celgene and Biogen. Investors fear a price war among pharma companies after prescription management company Express Scripts replaced a hepatitis drug of Gilead Sciences with a lower-cost alternative from rival AbbVie.
- Potential 2015 headwinds -
US stocks could climb higher still in the coming days as money managers who are under-invested in equities look to capitalize on the positive sentiment, said Mace Blicksilver, director of Marblehead Asset Management.
He also cited a paucity of sellers given shortened holiday trading sessions.
"I don't see anything to change the momentum of the market between now and year end," Blicksilver said.
The outstanding US growth figures comes on the heels of strong US labor and retail sales reports for November.
The latest US data bolsters the sense of advantage for the giant economy as Europe and Japan struggle to attain growth and growth slows in China and other emerging powers.
Adding to the momentum in the US has been a precipitous fall in gasoline prices, seen as a de facto tax cut for consumers.
US gasoline prices are now $2.38 for a gallon of regular, off about 27 percent from the year-ago level.
However, analysts cite some headwinds for the US economy heading into 2015, including a hit if major its trading partners continue to stagnate and the dollar remains strong.
Other unknowns relate to the implications of a crashing Russian ruble and of a huge drop in oil prices that weighs on US energy investment and the economic prospects of oil-exporting nations.
Most of all, market watchers say US stocks could stumble once the US Fed finally does begin to raise interest rates, as it is expected to do in the middle of 2015.
"Every year and every quarter, there are always issues to worry about," said Dan Greenhaus, chief global strategist at BTIG, who predicted increased volatility next year. "And 2015 doesn't appear to be any different."

 

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 us stocks soar to new record as growth accelerates Arab Today, arab today us stocks soar to new record as growth accelerates

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Turkey says ends its military operation

GMT 07:53 2017 Thursday ,30 March

Turkey says ends its military operation
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people

GMT 20:25 2017 Wednesday ,29 March

Bahrain Stock Index Drops 5.15 Points

GMT 20:19 2017 Wednesday ,29 March

US Stocks Rise on Consumer Data and Higher Oil Prices

GMT 17:51 2017 Wednesday ,29 March

Qatar Stock Index Gains 15.68 Points

GMT 12:54 2017 Wednesday ,29 March

Qatar Stock Index Gains 33.28 Points

GMT 12:08 2017 Wednesday ,29 March

Bahrain Bourse daily trading report

GMT 12:01 2017 Wednesday ,29 March

Bahrain Bourse holds 2016-2017 TradeQuest ceremony

GMT 10:52 2017 Wednesday ,29 March

Bahrain Bourse daily trading report
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 12:33 2017 Wednesday ,29 March

OptiBac Probiotics to launch new supplement

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" 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