Arab Today, arab today wall street set for positive momentum this week
Last Updated : GMT 06:34:46
Arab Today, arab today
Arab Today, arab today

Wall Street set for positive momentum this week

Arab Today, arab today

Arab Today, arab today Wall Street set for positive momentum this week

New York - Arabstoday

To borrow from “Star Wars,” the Force is strong with this stock market. Despite a ho-hum earnings season and central banks’ disappointing hopes for aggressive economic stimulus last week, U.S. stocks held firm. After four days of losses, the benchmark Standard & Poor’s 500 index rallied Friday, finishing the week in the positive for a fourth straight time and reaching three-month highs. Sustaining momentum are valuations that make stocks attractively priced relative to other assets. To be sure, some corporate earnings have been impressive, especially in defensive stocks such as utilities. The trigger for stocks’ surge was the Labor Department report that U.S. employers added 163,000 jobs to their payrolls in July, the most in five months. However, the unemployment rate, based on a different government survey, edged up to 8.3 percent. “There’s still a fair amount of pessimism, but equities are so much more attractive than bonds that the dividend on Johnson & Johnson, for example, offers a better yield than the company’s bonds,” said Bruce Zessar, managing director at Advisory Research in Chicago, which oversees about $9 billion. An investor would do better with the stock than the bond over the next 10 years even if the stock price went nowhere because of the stock dividend, he said. Based on measures like dividends and price-to-earnings ratios, equities appear cheap compared to other assets like Treasuries where yields on the 10-year note fell to a record low this past month. Stocks are the best house in a bad neighborhood. After the Federal Reserve and the European Central Bank did not take aggressive, immediate measures to spur growth, the market disappointment was fairly short-lived, considering how hotly the actions had been anticipated. The S&P fell about 0.7 percent Thursday following the ECB’s comments, compared with a near 2 percent rise before in anticipation of action. “This indicates that there is near- and long-term momentum on our side, like Wall Street’s version of ‘May the force be with you,’” said Sam Stovall, chief investment strategist for Standard & Poor’s Equity Research Services in New York. In another positive sign, large blocks of upside calls were apparently bought Friday in an exchange-traded fund designed to measure equity performance in the global emerging markets. The option flow in the iShares MSCI Emerging Markets fund “seems to express confidence that today’s global equity market rally can continue over the next seven weeks,” said WhatsTrading.com options strategist Frederic Ruffy. For last week, the Dow Jones industrial average rose 0.2 percent, the Nasdaq composite index added 0.3 percent and the S&P rose 0.4 percent. It was a fourth straight week of gains for the Dow and S&P and third for the Nasdaq. The S&P is up almost 9 percent from an early June bottom and is a mere 2 percent from its 2012 closing high. Much of that rise has come on gains in defensive sectors like telecommunications, a sign that while investors are not ready to abandon stocks, they’re still looking to limit risk and volatility. Telecom shares are by far the strongest performers of the year, surging 18.6 percent, more than double the S&P’s 8.5 percent gain for the year. “It’s rare to see gains lead by defensives, but they offer such attractive yields from dividends that even though valuations are stretched, they’re likely to get stretched further,” said Brad Sorensen, director of market and sector analysis at Charles Schwab in Denver. In a sign of near-term momentum, 87.5 percent of telecom shares are trading over their 50-day moving average, according to data from Bespoke. Utilities, another defensive group, have almost 98 percent of components above the moving average, compared to 71.8 percent of the S&P at large. This comes despite an earnings season marked by weak revenue growth and companies that are more negative about their outlooks than they have been in 11 years. Still, more than two-thirds of S&P components have topped profit expectations thus far, according to Thomson Reuters data. Quarterly earnings due this week include Walt Disney Co., Priceline.com and Chesapeake Energy. Results from Macy’s Inc and J.C. Penney Co Inc should shed light on the strength of consumer spending. From:Dailystars

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 wall street set for positive momentum this week Arab Today, arab today wall street set for positive momentum this week

 



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 wall street set for positive momentum this week Arab Today, arab today wall street set for positive momentum this week

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today What's the reason and what you can do

GMT 05:44 2017 Sunday ,22 October

What's the reason and what you can do
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 Syrian children die of hunger

GMT 19:25 2017 Sunday ,22 October

Syrian children die of hunger
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
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 EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
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