U.S. Stocks on Record Profits and a Higher Growth Path after Friday’s Rally

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U.S. Stocks on Record Profits and a Higher Growth Path after Friday's Rally
U.S. Stocks on Record Profits and a Higher Growth Path after Friday's Rally

U.S. Stocks on Record Profits and a Higher Growth Path after Friday's Rally

The better trading day for the U.S. stocks continued on the last trading day as stocks ended higher. Whereas the Dow Jones industrial average and S&P 500 index continued their push into record-high territory, expectations are that the rally will continue the next week amidst the news that the next chief of the Fed would not taper the stimulus.

Whereas the Dow Jones industrial average increased by 0.5% — 85 points and reached 15,961.7, the growth for the Standard & Poor’s 500 went up by 0.4% which reached to 1,798.18. On the other hand, the tech-laden NASDAQ composite was also up and gained 0.3% to reach to 3,985.97. According to reports it was the 38th time this year the Dow has finished at a record level.

Whereas it is the 36th time for the S&P 500 that it has reached to the highest point, the Nasdaq is at a 13-year high. Day before Friday, the Dow gained 54.59 points, or 0.4%, and finish at an all-time high of 15,876.22. There was a similar trend in the S&P 500 index which added 8.62 points, or 0.5%, to close at a record 1,790.62.

Janet Yellen’s Statement on Stimulus Tapering Boosted the Market

Interestingly enough, contrary to Friday’s gains, the NASDAQ composite edged up 7.16 points, or 0.2%, to 3,972.74 due to heavy buying in risk-averse sectors like power companies, banks and drug makers. A major turn on came from the statement made by incoming Federal Reserve chief nominee Janet Yellen at a Senate confirmation hearing.

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Yellen admitted that her ongoing support for the Fed’s massive monthly bond buying of government and mortgage-backed securities to spur economic growth will continue. Her statement sent strong signal to investors and traders and Dow, S&P 500 set records for a second straight day on Friday.

She also indicated that it was key not to take out stimulus measures during a fragile recovery.

Major Gainers on Better Trading Day

The government bond trading was a major hit on Friday trading wherein their on the 10-year note rose to 2.71% from 2.70% from Thursday. However, there was not much change in oil which was flat at $93.71 a barrel. There was little change in gold prices that rose $1.10 to $1,287.40 an ounce. Some major companies that made profits in stock trading on Friday included Zulily, Vanda Pharmaceuticals, Western Union, etc.

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