US stocks got back to record highs on Friday as investors received encouragement from good news on the job market, corporate earnings and housing.
On Thursday, Best Buy rose 7% after announcing quarterly results that came ahead of the expectations of analysts. Homebuilder stocks climbed after sales of US homes increase in October. Beazer Homes climbed 2%.
According to ABC News, the Standard & Poor’s 500 Index climbed 0.2% or 4 points to 2,052 while the Dow Jones Industrial Average climbed 0.2% or 33 points to 17,719. The Nasdaq Composite climbed 0.6% or 26 points to 4,701.
The People’s Bank of China announced that it would cut its one-year benchmark lending rates for the first time in over two years. This move came after the European Central Bank head, Mario Draghi said that the excessively low inflation should be raised fast by any means necessary.
Chief investment strategist at Janney Montgomery Scott, Mark Luschini said, “It isn’t the size of the moves but the shock value of the direction that is really lifting markets today.” This is a one-two punch for global growth.”
The gains in Nasdaq were limited by drops in tech companies. Microsoft Corp dropped 1.5% to $47.97 and Netflix Inc dropped 2.1% to $360.28, as reported by Reuters.
GameStop Corp dropped 13% to $37.86 per day after a video released by the retailer posted earnings and quarterly revenue that was lower than expected.
The largest gainers of the benchmark index were Autodesk Inc. and Ross Stores, which rallied after the release of results on Thursday. Autodesk climbed 6.1% to $61.95 while Ross climbed 7.3% to $89.27.
The S&P 500 posted 96 new 52-week highs with no new lows and the Nasdaq Composite Index posted 111 new highs and 44 new lows. On the US platforms, about 6.5 billion shares were traded, which is higher than the 6.35 billion above the month-to-date.
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