American stocks ended on a higher note on November 18 due to better economic environment. It also helped that clarity is now being seen on policies pushed by the Federal Reserve. It permitted the uptrend of the market seen after presidential elections to continue. This action put Dow and the Standard &Poor 500 to attempt to make newer peaks. The DJIA or Dow Jones Industrial Average fluctuated between minuscule losses and gains, before closing 0.2 percent or 35.68 points up at 18,903.
Stock markets and Federal Reserve
The upward movement of the Dow was led by shares of Microsoft Corp, Home Depot Inc. and Nike Inc. However, Wal-Mart Stores Inc. shares pushed it down 3.1 percent. Wal-Mart results showed weaker than estimated sales. Cisco Systems Inc. shares finished lower by 4.8 percent. A weak profit forecast was issued by the company on November 16. This average finished Dow’s winning streak which lasted seven sessions. The stocks rally after elections finally hit an interval on this day.
Janet Yellen, the Chairwoman of the Federal Reserve, in her testimony before House-Senate Joint Economic Committee, said that a hike in the interest rate may come soon. Her words highlighted expectations that the decision would be taken during the December meeting of the central bank. Even though that is the best time for such an announcement, a few investors have assumed of a delay on the presidency of Donald Trump. The Trump presidency may inject uncertainty into the economic outlook.
The Standard & Poor 500 went up by 0.5 percent or 10.18 points to touch 2,187.13. This is only three points lower than the record high which took place in middle August. A 1.3 percent rise is seen in financial stocks and there was an advance of 1.2 percent in consumer discretionary stocks. The down pressures were due to real estate stocks and energy sectors, with a decline of one percent and 0.7 percent respectively.
The Nasdaq Composite Index moved up 0.7 percent or 39.39 percent to close up at 5,333.97. This figure is only six points less than the record number reached in the latter part of September. According to David Carter of Lenox Wealth Advisors, the recent economic figures suggest an improvement in the economy and the specter of the Federal Reserve increasing rates in December. He said that if this happens, it would be a correct move by the government.