After a sharp rise early in the session, stocks continue to show significant strength in daytime trading on Thursday. A notable advance for the day is after the stock has almost finished its previous session.
In recent trading, the key average has risen further, reaching the highest of the session. The Dow rose 505.66 points or 1.5 percent at 34,883.47, the Nasdaq rose 235.14 points or 1.6 percent at 14,806.78, and the S & P 500 rose 67.86 points or 1.5 percent at 4,431.66.
The rally on Wall Street occurs when traders react positively to a batch of bright earnings news, mostly from some well-known companies.
Dow Component UnitedHealth (UNH) health Insurers reported better-than-expected results in the third quarter and raised guidance for the full year.
Financial giant Bank of America (BAC) has also recorded a strong rise, with both top-line and bottom-line analysts surpassing estimates after reporting its third-quarter results.
Morgan Stanley (MS) shares also turned upward after the investment giant reported better than expected in the third quarter.
In addition to Wall Street’s positive sentiment, the Ministry of Labor has released a report showing that the first claims for US unemployment allowance fell below 300,000 for the first time in more than a year in the week ending October 9.
Initial unemployment claims fell to 293,000, down 36,000 from last week’s revised level of 329,000, according to the report.
Economists expected unemployment claims to drop from 326,000, which was originally reported last week, to 319,000.
Since reaching 256,000 in the week ending March 14, 2020, unemployed billing has fallen to its lowest level due to a larger than expected decline.
The Ministry of Labor also released another report in September showing that US producer prices fell slightly below expectations.
According to the Ministry of Labor, the final demand producer price index rose 0.7% in August and then 0.5% in September. Economists expected producer prices to rise by 0.6%.
Core producer prices, excluding food, energy and trade service prices, rose 0.3% in August and then 0.1% in September. Core prices were expected to rise 0.4%.
Compared to the same month last year, producer prices in September soared 8.6% compared to the 8.3% surge in August.
Meanwhile, the annual growth rate of core producer prices fell from 6.3% in August to 5.9% in September.
The Philadelphia Semiconductor Index has risen 2.7% and semiconductor stocks continue to show considerable strength in trading between Japan and China.
The strength of the semiconductor sector is due to higher-than-expected quarterly profits from Taiwan’s leading chip company TSMC (TSM).
There is also considerable strength among computer hardware stocks, as reflected in the 2.3% surge by the NYSE Arca Computer Hardware Index.
Chemical stocks also rose sharply that day, with the S & P Chemical Sector Index rising 2.3%.
Inventories of housing, steel and natural gas are also strong, reflecting a wide range of buying motivations on Wall Street.
In overseas transactions, stocks market During Thursday’s trading, the Asia Pacific region as a whole rose almost. Japan’s Nikkei 225 Index rose 1.5% and Australia’s S & P / ASX 200 Index rose 0.5%.
On that day, major European markets also started to rise. The UK’s FTSE 100 index rose 0.9%, while the German DAX index and the French CAC 40 index rose 1.3% and 1.4%, respectively.
In the bond market, government bonds are expanding the upward trend seen in the last few sessions. As a result, the yield on benchmark 10-year bonds, which move in the opposite direction of the price, drops 3.1 basis points to 1.518%.
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U.S. stocks are on a rising trend following an early backlash
Source link U.S. stocks are on a rising trend following an early backlash