S&P and Dow Close at Record Highs

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S&P and Dow Close at Record Highs

On Wednesday, the Dow Jones Industrial Average and the S&P 500 closed at record highs in the quiet preholiday session of trading.

The Dow climbed 0.1% or 12.81 points to 17,827.71 while the S&P 500 Index gained 0.3% or 5.8 points to 2,071.83, marking its 47th 2014 closing high. The Dow, blue-chip index, pushed into positive territory the last trading hour, notching the 30th record close of 2014.

The Nasdaq Composite Index rose 0.6% or 29.07 points to 4,787.32.

According to The Wall Street Journal, the improving US economic data and the upbeat corporate earnings have assisted in propelling the US stocks to series of record highs. The data that was released this week indicated a 3.9% growth in the US economy in Q3, which was higher than the 3.5% initial estimate.

Chief investment officer at broker dealer LPL Financial, Burt White said, “The US economy is progressing nicely. We don’t see the data today derailing that view.”

According to BBC, figures of the Commerce Department indicated orders for the non-defense capital goods, which excluded aircrafts as having dropped 1.3% in October.

Separate figures from the Commerce Department showed that consumer spending rose 0.2% in October, and this is a key factor behind the economic growth of the US.

US Bank Wealth Management chief equity strategist, Terry Sandven said, “Consumer spending is key to drive the equity market higher.”

US economic data on Wednesday showed weak readings on the home sales. New home sales climbed 0.7% in October to the annual rate of 458,000. Economists had expected a 470,000 pace last month.

The index of pending sales of homes has also dropped unexpectedly.

Chief investment officer of equities at Charles Schwab Investment Management, Omar Aguilar said, “The housing market continues to be the only question mark.”

The yield on the 10-year Treasury note dropped 2.234%. The yields are dropping with increase in prices.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com