Wall Street continues its ascent
September 3, 2010
Wall Street finished higher on Thursday, avoiding the profit-taking after surging the day before with the announcement of an unexpected recovery of promises in real estate sales and falling jobless claims.
In volumes remain relatively low, the Dow Jones finished with a gain of 50.63 points, or 0.49%, to 10,320.10.The Standard & Poor's 500 rose 9.81 points (0.91%) to 1,090.10 and the Nasdaq Composite took 23.17 points (1.06%) to 2200.01.
The promises of sales in the older building rose 5.2% in July compared to the previous month according to monthly statistics from the National Association of Realtors (NAR), while the market anticipating a further decline.
Meanwhile, the number of new jobless claims fell 6,000 last week to 472,000, allowing a slight decline in four-week moving average, more significant changes in trend.
"Real estate was a major disappointment in recent times and as the number of sales agreements is not bad, it allowed the continuation of the rally yesterday," said Gary Flam, manager of Bel Air Investment Advisors .
Wall Street had gained nearly 3% Wednesday, the three major indexes posting their best performance in nearly two months.
Home Depot, the world's largest DIY and interior design, won 2.58%, one of the largest increases in the Dow.
THE takeover animate ALWAYS THE MARKET
Real estate and employment are the two main concerns of investors, so that some fear a relapse of the economy into recession.On the eve of the publication is always eagerly awaited monthly statistics of employment indicators Thursday were therefore confirmed buyers.
"Entries (unemployed) are probably the best leading indicator we have for tomorrow's figures and they suggest that these numbers will at least online, which would already be considered a good thing because the indicators have been continuously disappointing in recent times, "said Gary Flam.
Complementing this positive picture, several retail chains have reported sales above expectations in August.
This good news "puts aside a portion of fears of a 'double dip'," said John Cannally strategist LPL Financial in Boston.
"Today's figures are good but, given the high level of unemployment, it is difficult to be very optimistic for the consumer, however, tempers Michael Sheldon, chief strategist of RDM Financial.
The Morgan Stanley Retail distribution and its equivalent S & P gained 2.4% and 2.2%.
Among the big names in the industry, Gap Inc. rose 1.3% and Wal-Mart of 1.05%.
Another market driver for several days, mergers and acquisitions have also facilitated the session.Burger King has jumped 25% after the official announcement of its acquisition by private equity group of 3G Capital for about $ 3.26 billion.
As for the data storage specialist 3PAR computer, it took 2.49% after the victory of Hewlett-Packard Dell in the battle between the latter two for his redemption.
HP gained 1.2%, and Dell, which should pocketing 72 million dollars in compensation for breach of its agreement with 3PAR, took 1.98%.
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