Home News Stock Exchanges US indices closed the session with a third day of growth

US indices closed the session with a third day of growth

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The US indices closed the session with a third day of growth, as banks and consumer goods companies performing strong. The blue chip index Dow Jones Industrial Average grew by 40 points, or 0.2%, to 24,641 points. The broader benchmark S&P 500 added 7 points to 2,663 points, representing an increase of 0.3%. The index Nasdaq Composite rose by 32 points, or 0.5%, to 7,013 points.
All three indices started the session down, but they managed to recover until the end of the trade.
Most of the shares in the US fell with the dollar, while government bond yields rose amid fears of financial markets before the report on inflation on Wednesday. The signs of inflation in the employment report two weeks ago were the main reason for the historic sale of the shares. The investors worry that the data could trigger a new round of sales.
However, the current levels remain 7% below the record levels of the previous month, which means they are still in correction.
Recent significant stock market sales and rising bond yields came after better-than-expected labor market data that fueled fears of rising inflation. Current US consumer price index data will be released on Wednesday.
The hedge funds and other large speculators raise their bids on government securities futures to record levels, indicating they expect the collapse of the bond market in 2018 to resume in the future. A Goldman Sachs Asset Management analyst warned that yields on 10-year bonds could rise to 3.5% over the next six months.
The reporting season continues. The sportswear company Under Armour reported 16% increase in its share price after announcing a resumption of sales in the fourth quarter.
The market capitalization of the vitamin products retailer GNC rose by more than 35% after the company secured 300 million USD financing from Harbin Pharmacuetical to expand its operations in China.
PepsiCo shares also reported slight growth. The soft drink manufacturer intends to launch a share buyback campaign and increase the dividend. However, the stagnation in the core business led to a collapse in the Pepsi-Cola producer’s profit last year.
The shares of Wells Fargo rose by 2.7% after Chief Executive Timothy Sloan reassured investors that the Federal Reserve’s action from the end of last week will not badly affect the bank.