Traders took it upon themselves to buy into U.S. stocks during Friday’s trading session. This marked the third straight day of gains for the leading equities on Wall Street. This is after they dipped during the first 2 days of last week. Traders became more confident as the trading week dragged on. This was after news from Japan showed that policy makers are willing to boost additional stimulus into the nation’s economy.
It is important to take into account that there are still risks associated with investing in the financial markets, especially U.S. stocks. However, the positive earnings data from a number of the top companies last week was a much needed boost. This was the good news which traders were waiting for, as there has been so much instability as of late. The reality on the ground such as how much profit companies are making is the most important aspect in the evaluation of a stock. Therefore, investors may have further confidence in the longer term to take the required risks.
Facebook Inc. surged on Friday by 1.34% to $31.72. Microsoft Corp. gained 1.4% to $26.83. Intel Corp. jumped 0.92% to $22.00. Cisco Systems made gains of 0.2% to $20.48. Yahoo! Inc. advanced 1.58% to $19.29. Delta Airlines Inc. added 0.28% to $13.35.
Traders should note that the advances we saw on Friday would have been greater if many investors were not sitting on the sidelines. They were waiting for additional earnings data to be published during the current trading week. One of the most important events today will be the Ben Bernanke speech during the U.S. session.