The Federal Reserve’s schedule for ending stimulus is nearing, while the Standard & Poor’s 500 Index (SPX) fell for the week. A major concern among investors is that they are wary about the impending tapering of stimulus and out of insecurity many of them selling shares than buying. However, as the economy of the country is gaining strength, investors may gain confidence soon.
On a dismal trading day, the S&P 500 declined 0.5 percent to 1,831.37 in the holiday-shortened week. It is to be noted that the S&P 500 gained to a great extent in 2013. It gained 30 percent, which is the most since 1997. A similar pattern was followed by the Dow (INDU) Jones Industrial Average which lost 8.42 points, or 0.1 percent, to 16,469.99 for the week.
Major Gainers and Losers
The major loser in today’s trading was General Motors Co. as its shares dropped 3.4 percent on an unexpected decline in December vehicle sales. A similar pattern was followed by Apple Inc. which slumped 3.4 percent. This was a significant fall in the shares of the blue-chip company as Wells Fargo & Co. cut its recommendation on the stock.
Traders were seen buying the stocks of Bank of America Corp. as they climbed 4.7 percent. This happened as Citigroup Inc. advised investors to buy the lender’s shares and that set the moods of investors. Similar pattern was followed by Hertz Global Holdings Inc. which went up 11 percent. The company got impetus as a takeover-defense plan may take place soon.
Twitter and Delta Air Lines Inc Up
Better trading for Twitter Inc. continues as its shares jumped 8.2 percent to $69. Coming just after a couple of months going for the listing, the shares of this social-networking company have the potential to outperform the expectations. According to some market observers as twitter can become a leading platform for video viewing, its value will further improve.
Twitter, whose stocks were getting a challenge at $50 median value, is now trading close to $70 and that has amazed investors. Following the patter of Twitter, Delta Air Lines Inc. too received higher growth as its stocks increased 8.1 percent to $29.23 for the biggest gain in the S&P 500. Investors were seen buying the airline carrier’s stocks as the company reported that key revenue metric rose 10 percent in December from a year earlier.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org