Wall Street markets started the week with strong growth against the backdrop of the appreciation of stocks of the technology companies.
The blue-chip index Dow Jones Industrial Average added 354 points to its value and reached a level of 24,640.24 points, marking its strongest growth in over two weeks. The broader S&P 500 rose by 1.55% to 2,673.45. The technology index Nasdaq Composite also finished on green territory with a 2.06% increase to 7,081.85 points.
The growth of Wall Street indexes on Monday comes as they mark their worst Thanksgiving week since 2011, as sell-off of technology stocks and oil prices have put traders in a risk-averse regime. Only on Friday, the price of oil fell by almost 8%.
Investors also expect a statement by Federal Reserve Chairman Jerome Powell later this week. He must speak to the New York Economic Club on Wednesday. At the latest sell-offs, the investors were worried about the future of monetary policy at a time when the central bank was about to consolidate its approach. The Fed is expected to raise rates in December after three hikes earlier this year. Next year, the central bank plans another three interest rates hikes.
The investors will also watch policy news this week, with dominating topics being the G20 summit in Argentina and the Brexit agreement. At the sidelines of the G20 summit, the US President Donald Trump will meet with Chinese leader Xi Jinping to discuss the trade relations between the two countries.
On the bond markets, the yields on 10-year US Treasuries rose to 3.068%, while those of 30-year Treasuries rose to 3.321%.
In the forex markets, the dollar index, which measures the value of US money against a basket of six major currencies, rose by 0.17% to 97.08 points. The euro fell by 0.12% to a level of 1.1326 USD.
The stocks of the technology giants know as FAANG (Facebook, Amazon, Apple, Netflix, and Google) rose by at least 1%.
Last week, Facebook’s stock price dropped against criticism of how the company ruled against using its platform by Russian officials in their attempts to influence US presidential elections. The stocks of Apple sank last week as investors were worried about the iPhone’s sales slowdown.
“This is part of a normal bottoming process. It’s going to be some time before we bounce off the lows”, said the chief investment strategist at Key Private Bank, Bruce McCain. “But as long as the economy is good and the earnings continue to grow, we still have a chance of making new highs, sometime between the first and second quarter of 2019. This is going to be a worrying time. There’s a lot to worry about. But as long as the economy remains strong, we should be OK”, added he.
General Motors’ stock rose by 4% after the company announced plans to cut production at a number of factories and cut its staff by 15%. The cost reduction plan is more drastic than the expectations of investors.
The stocks of retailers rose as online Black Friday sales reached a record volume of 6.22 billion USD, according to Adobe Analytics. The record sales were up by 23.6% from last year. SPDR S&P Retail ETF (XRT) rose by 2% thanks to the growth of GameStop, Amazon and L Brands.
The stocks of world’s largest solar panel manufacturer JinkoSolar rose by 13.3% in pre-market after reporting better than expected Q3 earnings and revenues, as solar module shipments hit a new company and industry record 2.95 GW.
The bulk carrier operator Diana Shipping reported net income of 14.8 million USD and net income attributed to common stockholders of 13.3 million USD for the third quarter of 2018, compared to a net loss of 24.5 million USD and a net loss attributed to common stockholders of 25.9 million USD reported a year ago. The company’s time charter revenues were 61.5 million USD for the third quarter of 2018, compared to 43.9 million USD for the same period of 2017. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter.
KNOT Offshore Partners reported total revenues of 70.7 million USD for the three months ended September 30, 2018, compared to 69.8 million USD for the three months ended June 30, 2018. The increase in revenues was mainly due to full earnings from the Brasil Knutsen, as the vessel had finished its scheduled first special survey drydocking during the second quarter, and one additional calendar day in the third quarter. The vessel operating expenses for the third quarter of 2018 were 15.3 million USD, an increase of 1.3 million USD from 14.0 million USD in the second quarter of 2018.
The research and development-focused biotechnology company Enanta Pharmaceuticals reported financial results for its fiscal fourth quarter and year ended September 30, 2018. The total revenue for the three months ended September 30, 2018, consisted of 67.2 million USD of royalty revenue, compared to total revenue of 75.9 million USD for the three months ended September 30, 2017.