Wall Street Stays Firm

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Wall Street Stays Firm
Wall Street Stays Firm

Wall Street Stays Firm

The U.S. stock market stays firm on Wednesday where the S&P 500 index manages to sustain itself above the psychological support level of 1800, even after the release of economic indicators including Chicago PMI, unemployment claims, and consumer sentiment that showed the outcome to be much better than expected. The point here to note is that the better the economic indicators come now, the higher the chances would be that the tapering of stimulus plan is done as soon as possible.

And if this happens, then the stock market would start falling because money supply would be curbed and this boom in the market or should we say the artificial optimism would not be there. Yet again, the role of overall market sentiment is coming into play where the overall market outlook is still bullish where the signs from different major economies show that the world economy is getting better.

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Record Levels

Major currencies are rising constantly for the past 2 weeks, whereas the Asian stock markets including Nikkei and Topix are trading at almost all time high level. The Japanese yen has lost its charm where it is trading at an all-time low level, since the major currencies have topped record high levels against the Japanese yen.

Stocks

Hewlett-Packard shares gained massively today on the stock market where a sharp rise of 7.9% was witnessed as the computer devices maker company revealed its revenue and profit results that showed outcomes to be well above and much better than the forecasts done by the analysts. Moreover, it is a good time for the investors to long the shares as there are chances that the company might be amassing a healthy amount of revenue and profit streams this quarter since the sales are expected to rise on Thanksgiving, Cyber Monday, and then Christmas.

On the other hand, the oil companies including Chevron and Schlumberger Ltd saw the shares dropping down as the crude oil prices in the international market fell to the lowest levels in the past 6 months. This has happened as the nuclear deal has been reached and sanctions on Iran have been eased.

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