Today, most of the stocks and indexes were up in the U.S. stock market despite the last day’s dismal trade wherein U.S. markets suffered their biggest losses in more than seven months. At the time of writing the news, most of the indexes are up. Several of the companies have seen better trading on Tuesday despite a dismal trade in the Asian stock market earlier in the day.
Whereas the Dow Jones industrial average futures were are up 66 points at 15,359 about 20 minutes before U.S. stock trading officially stated yesterday, a similar trend has been seen in the Standard & Poor’s 500 index futures which is up 11 points at 1,744. Positive trade has also been marked in NASDAQ futures wherein it has gained 20 points to 3,450 today.
Major gainer in yesterday’s trade was Yum! Brands Inc. (YUM). The company that is involved in fast-food retailing climbed 9.1 percent after it reported profit that beat estimates made by analysts. A similar upward movement was seen in Michael Kors Holdings Ltd which rallied 18 percent as the luxury-goods maker increased its profit and sales forecasts.
A slight growth was seen in the medicine maker Pfizer (PFE) Inc. The company advanced 2.5 percent amid an analyst upgrade. However, there was no respite for J.C. Penney Co. which plunged to the lowest level since 1980. The company has not been able to meet the estimates from the market observers as its sales could not go up on the expected lines.
A mega change was seen in the largest software maker Microsoft as it named Satya Nadella of Indian origin as its new CEO. Now, the founder of the company Bill Gates will step down as chairman and will become a technology adviser to Microsoft.
Factory Output of the U.S. and Stimulus Tapering
According to the estimates orders for factory goods in December fell 1.5 percent which is less than the average economists’ estimate of 1.8 percent. Also, some estimates tell that the U.S. will post the narrowest budget deficit this year as a share of the economy since 2007. The opinions are that stronger growth will help boost tax revenue to some extent.
Also, the deficit is expected to go down further by $514 billion this fiscal year. The government is already going ahead with its stimulus tapering amidst; however, market observers are concerned about its impact on the global economy. The IMF Chief has already warned about its impact and the potential economic slowdown that may follow.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org