The benchmark gauge of US stocks, the Standard & Poor’s 500 Index has went to its highest level in the last 5 years. The investors are optimistic about the data which shows rising investor confidence in Germany and also because of several deal finalizations. The S&P 500 Index surged by 0.5% and is currently at 1527.03. Apart from that, the Dow Jones Industrial Average increased by 41.60 points as well and is at 14023.36. The overall trading volume in the S&P companies was 7.5% higher than the average of last 30 days. Incidentally, due to the President’s Day, yesterday, the US markets were closed.
The Chief Investment Officer of Beaconcrest Capital Management, Kevin Divney, stated that as the number of deals was on a high note today, the overall sentiment was pretty positive. Kevin added that the company CEOs is now looking further out, which was not the case for last 4 years. If the horizons can be extended, this will pave way for better strategic decisions.
Incidentally, on 15th February, the S&P 500 companies completed the 7th successive weekly advance as it gained 0.1% on the last week, mainly being helped by the better than estimated economic data and optimism over the corporate merger development. The gauge is now only 2.4% lower than the all-time high figure of the same, experienced in 2007. The same was 1565.15. On the other hand, the DOW is currently 1% away from its record high of 14164.53.
Bank of America gained 1.9% and it is at $12.26 now, marking the biggest jump in the Dow shares. Citigroup also increased by 1.7% and is at $44.59 per share now. The KBW Bank Index actually went ahead by 0.7% as well. The 2nd largest office-supplies retailer in US, Office Depot saw its share prices increasing by 50 cents per share. On the other hand, OfficeMax also rallied to $13.13 per share. In last September, the activist fund Starboard Value LP became the biggest shareholder of Office Depot and since then, the company has looked out for new options. Incidentally, Office Depot is in talks with OfficeMax over a possible stock swap and if this happens, it will create a single office supply, directly in competition with Staples Inc. Best Buy also gained 47 cents as the stocks of the same was raised to overweight by Barclays.