Dow Jones celebrates its best day for more than two weeks :: Investor.bg



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Dow Jones marked its best day for more than two weeks

Photo: Reuters

US markets began the week with strong growth against the background of stock appreciation of some troubled tech companies after a sharp decline last week, CNBC said.

The Dow Jones Industrial Average blue chip index added 354 points to its value and reached a level of 24,640.24 points, marking its highest growth in more than two weeks. The broader S & P 500 advanced 1.55% to 2673.45. Nasdaq Composite technology also ended in green territory with a gain of 2.06% to 7081.85 points.

Facebook, Amazon, Apple, Netflix and Alphabet, Google's parent company, have increased by at least 1%.
Last week, Facebook's stock price fell against criticism of how the company ruled out use of its platform by Russian officials in its attempts to sway the US presidential election. Apple sank last week as investors worried about the slowdown in iPhone sales

"This is part of a normal bottom-up process. It will take some time before we get out of this," says Bruce McCain, chief investment strategist at Key Private Bank. "But while the economy is growing well and profits continue to grow, we have a chance to reach new heights" between the first and second quarters of 2019, he added. "It's going to be a troublesome time, there's a lot to worry about. But as long as the economy remains strong, we need to be well," McCain said.

The index's move on Monday comes as they mark their worst week of Thanksgiving in 2011 as the sale of tech stocks and oil prices have put traders in a risk aversion regime. Only on Friday the price of oil fell about 8%.

Shares of General Motors rose 4 percent after the company announced plans to cut production at several factories and reduce its team by 15 percent. The cost containment plan is more drastic than investor expectations.

Retail retail prices rose as Black Friday's online sales hit a record $ 6.22 billion, according to Adobe Analytics. Record sales rose 23.6% over last year. The SPDR S & P Retail (XRT) ETF rose 2% thanks to growth in the GameStop, Amazon and L. brands.

Investors are also expecting a statement from Federal Reserve Chairman Jerome Powell later this week. He's due to speak to the New York Economic Club on Wednesday. At the last sell-out, investors were worried about the future of monetary policy, as the central bank is about to consolidate its approach. The Fed is expected to raise rates in December after tightening monetary policy three times earlier this year. Next year, the central bank should raise interest three times.

Investors will also be pursuing policies this week, with dominant themes being the G20 summit in Argentina and Brexit. The summit of leaders of the world's strongest economies will convene US President Donald Trump and his Chinese counterpart Cz Jinpin at a time of intense trade pressure between the two countries. At the same time, Britain has received support from the European Union for the withdrawal agreement.

In bond markets, yields on 10-year US government bonds rose to 3.068%, and 30-year bonds rose to 3.321%.

In foreign exchange markets, the dollar index, which measures the value of US money against a basket of the six major currencies, rose 0.17 percent to 97.08 points. The euro fell 0.12% to a level of $ 1.1326 per euro. Compared to the yen, the dollar rose 0.54% to 113.55 yen per dollar.

In the commodity market, oil prices rose as a way to offset some of the severe losses in the previous session, although growth was limited by uncertainty surrounding global economic growth and new signs of increased supply.

Brent benchmark futures rose $ 1.67 to $ 60.47 a barrel after falling 6 percent on Friday. US light oil contracts (WTI) added $ 1.21 to their value at $ 51.63 a barrel after falling 7.7 percent on Friday.

US gold futures reached $ 1222.40 an ounce.

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