US markets hit fresh all-time highs

Published 22-FEB-2017 13:11 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

US markets emerged from Presidents’ Day as bullish as ever with all three major indices hitting fresh all-time highs. In morning trading the Dow surged from the previous day’s close of 20,624 points to 20,758 points, a gain of 0.65%.

While it retraced to some extent throughout the day, a strong afternoon session saw it close at 20,736 points.

It was a similar story with the NASDAQ as it opened strongly before pulling back midsession and then finishing strongly in the afternoon, posting a gain of nearly 0.5%. The close of 5865 points was close to the all-time high of 5868 points that it struck in early morning trading.

A mix of factors drove the rally. A circa 1% increase in the oil price which saw it hit a high of US$54.68 per barrel was a contributing factor.

Despite a fall in earnings at Wal-Mart, the same-store sales increase was seen as a positive as the company’s shares rallied 3%.

The FTSE 100 came off 0.3% to close at 7274 points with the fall in HSBC shares dragging the index lower.

There was better news in mainland Europe as the German DAX surged 1.2% to close at 11,967 points following the release of strong PMI (Purchasing Managers’ Index) figures.

This is a good guide to the health of the manufacturing sector, hence the rally that saw the DAX hit a 10 month high.

This positive news also appeared to rub off on the Paris CAC 40 which finished up 0.5% to close at 4888 points.

Once again, the gold price held up in the face of positive sentiment across most markets. There doesn’t appear to be any sign of the precious metal being sold down due to decreased demand for its safe haven appeal.

As US markets drew to a close, gold was trading close to the previous day’s close of US$1239 per ounce.

Elsewhere on commodities markets iron ore rallied strongly to hit US$94.86 per tonne.

The Australian dollar weakened slightly to finish at US$0.768.

It is a big day on the reporting season front with the release of interim results by Fortescue Metals Group and Woolworths, while Coca-Cola Amatil will be releasing its full-year result for the 12 months to December 31, 2016

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free