Moscow. October 16. The Dow Jones Industrial Average and Standard & Poor’s 500 at the end of trading on Thursday reached the highest level since the end of August, thus lifting the Dow Jones was the second largest in October, writes MarketWatch.
Indicators of the financial sector and the healthcare sector within the S&P 500 rose more than 2 percent.
Bidders and analysts expect a smaller increase in interest rates by the Federal reserve system (the fed) in the near future. In addition, investors studied the first financial statements of companies in the last quarter, and new macroeconomic data from the US.
“Today’s rally is the result of better than expected company reporting, particularly in the financial sector, and the belief that interest rates will not rise until the end of winter or early spring of 2016,” said chief economist at Capitol Securities Management Kent Engelke.
The futures market indicates that traders estimate the probability of increasing the cost of lending by the end of this year about 27%, while at the end of September the waiting was 41%.
As it became known on Thursday, annual inflation in the U.S. in September was zero, while prices excluding food and energy rose 1.9% versus the expected 1.8 percent.
The number of Americans who first applied for unemployment benefits last week fell by 7 thousand to 255 thousand, the Value of the indicator coincided with reached in mid-July level that was the lowest since November 1973.
The index of manufacturing activity in new York Empire Manufacturing in October remained below zero for the third month in a row – a minus 11,36 points against minus 14,67 points in September. Analysts surveyed by Bloomberg, forecasted a rise to minus 8 points. A negative indicator value indicates contraction of activity in the industry.
According to analysts, the profit of the companies listed in Standard & Poos’s 500 fell in the third quarter by 7.2%.
“The decline in profit is not problematic for the markets if it was to be expected,” says the Standard Life Investments strategist Frances Hudson.
The prices of securities Citigroup Inc. jumped by 4.4% due to higher profits in the third quarter.
Stock quote Goldman Sachs rose 3%, despite the fact that it reduced profits in the third quarter by 36% and the result was worse than expected for the first time since 2011.
Shares Of UnitedHealth Group Inc. fell by 1.6%, despite better-than-expected quarterly profit.
Netflix’s market value fell by 8.3% after the video service announced a weak increase in the number of subscribers in the United States.
The reduction in the capitalization of the world’s largest retailer Wal-Mart Stores Inc. continued for the second consecutive session on Thursday (-1,2%) after a maximum collapse since 1988 on Wednesday.
The Dow Jones Industrial Average on 15 October rose by 217 points (1,28%) – to 17141,75 item.
Standard & Poor’s 500 increased by this time 29,62 points (to 1.49%), to 2023,86 item.
The value of the Nasdaq Composite on the basis of trades increased by 87,25 points (1,49%) – to 4870,10 item.