US stocks went ahead, thereby erasing earlier losses that it experienced for the benchmark indexes. A report came out showing that weakness in manufacturing industry will make sure that the Federal Reserve does not scale back the stimulus.
The benchmark gauge Standard & Poor’s 500 Index went ahead by 0.6% on today and it is currently at a record high of that of 1,659.77. Earlier in the session, the gauge actually went down by 0.2%. On the other hand, the Dow Jones Industrial Average increased by 69.38 points and the same is currently at 15,284.63. This is an all-time high figure for the same. Overall, the trading volume was 2.4% below the 30-day average of the shares being traded.
According to the Co-Manager at GMG Defensive Beta Fund, Oliver Pursche, the current global economic outlook gives some support to the idea which says that more easing is on its way, particularly with soft inflation. Pursche added that it will surprise everyone if a prolonged and meaningful pullback is experienced at this point of time.
The bullish US market has entered its 5th year in 2013. The S&P 500 Index has climbed up by 145% from its 12-year low value experienced in 2009. The corporate earnings have been better than what was estimated. Apart from that, Federal Reserve held 3 rounds of bond purchases, thereby helping the economy to boost further.
The industrial production in US declined the most in April in the last 8 months, thereby reflecting the broad based cutbacks in the overall factory output. In May, the manufacturing in New York shrank quite unexpectedly as various factories received less number of orders and the sales stagnated as well. A report coming out from the Labor Department showed that the wholesale prices declined in April the most in last 3 years which shows that a decrease in the fuel costs is helping the underpin profits.
As far as companies are concerned, Macy’s Inc. went ahead by 2.3% as it reported that their profit beat estimates. Apart from that, the company decided to increase the share buyback program as well, thereby helping the shares. Each share of the same is now priced at $48.49. On the other hand, Netflix Inc. saw it shares jumping ahead by 4.2%, thereby extending the gains for the 6th straight day. Each share is at $243.83 now.