US markets hit fresh all-time highs

By Trevor Hoey. Published at Feb 22, 2017, in Equities

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.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn