Dow Jones Industrial Average Tops 28000 for the First Time
15 Noviembre 2019 - 3:42PM
Noticias Dow Jones
By Paul J. Davies and Gunjan Banerji
The Dow Jones Industrial Average surged above 28000 for the
first time Friday, a furious rally in the final minutes of the
trading session.
The blue-chip index opened modestly higher and climbed
throughout the session as investors cheered good news on trade
talks and the economy. Friday's biggest gainers were UnitedHealth
Group, Johnson & Johnson and Pfizer.
The index closed at 28004.89, a gain of 223 points, or 0.8%.
White House economic adviser Lawrence Kudlow indicated progress
toward a potential trade deal with China this week, while Federal
Reserve Chairman Jerome Powell expressed optimism over the economy.
A better-than-expected corporate earnings season has also helped
fend off fears of a recession.
The S&P 500 notched its longest winning streak since 2017,
coming off a historically calm stretch for the stock market.
Investors drove the broad stock market index up about 0.9%
Friday for a 0.9% weekly gain.
The S&P 500's six-week winning streak is its longest since
November 2017 when the index rose for eight consecutive weeks.
However, it comes in the midst of lull -- the index hadn't moved up
or down more than 0.5% for nine consecutive trading days through
Thursday, the longest streak since October 2018, according to Dow
Jones Market Data.
The mixed signals of progress between the U.S. and China have
left investors in a lurch. Although the market sees a resolution as
more likely, global stock indexes have hardly budged this week --
reflecting the continued concern for regression in talks.
"I think the uncertainty is still elevated," said Justin
Onuekwusi, head of retail multiasset funds at Legal & General
Investment Management. "Just because you see an improvement doesn't
mean it's gone away," he said.
The Nasdaq Composite added 0.7%. Those indexes are set slight
weekly gains.
Fresh data early Friday showed U.S. retail sales rebounded in
October, rising 0.3% and beating the estimates of economists
surveyed by The Wall Street Journal.
The latest retail sales figures, along with some strong
corporate earnings reports, have bolstered confidence in the U.S.
consumer, a key engine of domestic growth. Walmart on Thursday
reported another increase in sales, extending its winning streak to
five years.
"Ever so slowly...you get increasing confirmation that this
slowdown has stabilized," said Joseph Amato, chief investment
officer at Neuberger Berman. "All these things have come together
to build a little bit more confidence in risk assets."
On Friday, shares of J.C. Penney rose 8.2% after the retailer
boosted its financial outlook for this year and reported
better-than-expected third-quarter results. Some strong retailer
earnings have spurred optimism that a strong holiday season could
be ahead for these companies.
Investors have also been encouraged by a rebound in
government-bond yields, particularly in the U.S., and the growing
positive gap between 10-year yields and two-year yields, which is a
move away from the recessionary signals of earlier this year.
U.S. 10-year Treasury yields rose to 1.827% on Friday, according
to Tradeweb, from 1.815% on Thursday. The lurch higher in
government bond yields and strong economic data has led some
investors to boost their outlooks for the rest of the year.
"Much of this rally over the past 30 days is the reassessment of
the recession risk that was increasingly priced into the market,"
said Bob Browne, chief investment officer of Northern Trust Corp.
"We would expect this momentum to continue going into the end of
the year."
Elsewhere, the Nikkei 225 in Tokyo finished the day 0.7% higher,
although it was marginally down for the week, while in Europe the
Stoxx 600 was up 0.6% on the day.
In Hong Kong, the Hang Seng Index was flat Friday but ended the
week down 4.8%, its worst week since early August, after
antigovernment protests in the Chinese territory turned more
violent with some of the worst clashes in six months of unrest. The
Shanghai Composite Index ended the week down 2.5%.
There were conflicting signals for the oil markets: The
International Energy Agency raised its 2020 oil-production growth
forecast for producers outside the Organization of the Petroleum
Exporting Countries. However, that came just hours after OPEC had
cut its forecast for oil production output for non-cartel countries
next year.
Caitlin Ostroff contributed to this article.
Write to Paul J. Davies at paul.davies@wsj.com and Gunjan
Banerji at Gunjan.Banerji@wsj.com
(END) Dow Jones Newswires
November 15, 2019 16:27 ET (21:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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