The US stocks edged lower on Wednesday, ending its four-day winning streak for the Dow industrials as the last week’s rebound ran out of steam. The Dow Jones Industrial Average missed 30.83 points or 0.2%, to 15963.94. The S&P 500 dived 0.49 point or less than 0.1%, to 1819.26. The Nasdaq Composite Index moved relatively better, profiting 10.24 points or 0.2%, to 4201.29.
The snap came below 193-point rally on Tuesday in the Dow, its largest daily profit since December 18, as new Federal Reserve Chairwoman Janet Yellen said she anticipated a great deal of continuity in its approach to monetary policy, implying the central bank may keep an accommodating stance that investors have broadly seen as a wind for stocks. S&P 500 stocks fell 1.6% but the S&P 500 remained at 20% from where it is situated 12 months ago.
The latest gains largely displayed short-term repositioning after an abrupt sell-off in mid-to-late January, traders said. At that point, sharp surges in emerging markets stocks and currencies prodded some investors to cut holdings, and purchase options and other products to hedge portfolios. The turnaround of bearish bets gave some of the elevation to the market last week week, traders mentioned. Traders said it is vague what will push the market’s next move, with much of 4th quarter earnings season and Yellen’s transition to lead the US central bank out of the way. A report on retail sales industrial production and consumer sentiment are to be told on Thursday and Friday, respectively.
The January dip and later bounce back notes a contrast to the latter half of 2013, which saw key gauges accelerate smoothly, with less bumps along the way. Despite the latest swings, bulls have noted continuous improvement in the US economy to justify further gains. In Europe, the Stoxx Europe 600 increased 0.8%, following the Bank of England increased its 2014 economic growth estimates to 3.4%, from the 2.8% prediction in November. The European Central
Bank also noted the UK unemployment rate could drop to 7% early this year, something it had primarily prophesied might not happen until 2016. In Asia, China’s Shanghai Composite went up 0.3% to a 2014 peak. China’s exports bounced 10.6% in January last year, well above anticipations of a 0.1% increment. Japan’s Nikkei Stock Average got 0.6%.
In the corporate arena, TripAdvisor advanced 7.2%, following the travel-review website reported its revenue growth that outdone forecasts, while earnings met estimates on Tuesday. Watch designer Fossil Group gained 3.5% after net profit and revenue surpassed its prediction. Lorillard decreased after the cigarette maker dropped 5% that reported a smaller quarterly profit, while Procter & Gamble fell 1.7%, which led the Dow lower, after cutting down its annual profit forecast. Cisco Systems sank 4.2% on Wednesday’s trading. The network-equipment giant’s fiscal 2nd quarter profit matched a stern prediction it had reported in November after the close.
The material has been provided by InstaForex Company – www.instaforex.com
The US stocks edged lower on Wednesday, ending its four-day winning streak for the Dow industrials as the last week’s rebound ran out of steam. The Dow Jones Industrial Average missed 30.83 points or 0.2%, to 15963.94. The S&P 500 dived 0.49 point or less than 0.1%, to 1819.26. The Nasdaq Composite Index moved relatively better, profiting 10.24 points or 0.2%, to 4201.29.
The snap came below 193-point rally on Tuesday in the Dow, its largest daily profit since December 18, as new Federal Reserve Chairwoman Janet Yellen said she anticipated a great deal of continuity in its approach to monetary policy, implying the central bank may keep an accommodating stance that investors have broadly seen as a wind for stocks. S&P 500 stocks fell 1.6% but the S&P 500 remained at 20% from where it is situated 12 months ago.
The latest gains largely displayed short-term repositioning after an abrupt sell-off in mid-to-late January, traders said. At that point, sharp surges in emerging markets stocks and currencies prodded some investors to cut holdings, and purchase options and other products to hedge portfolios. The turnaround of bearish bets gave some of the elevation to the market last week week, traders mentioned. Traders said it is vague what will push the market’s next move, with much of 4th quarter earnings season and Yellen’s transition to lead the US central bank out of the way. A report on retail sales industrial production and consumer sentiment are to be told on Thursday and Friday, respectively.
The January dip and later bounce back notes a contrast to the latter half of 2013, which saw key gauges accelerate smoothly, with less bumps along the way. Despite the latest swings, bulls have noted continuous improvement in the US economy to justify further gains. In Europe, the Stoxx Europe 600 increased 0.8%, following the Bank of England increased its 2014 economic growth estimates to 3.4%, from the 2.8% prediction in November. The European Central
Bank also noted the UK unemployment rate could drop to 7% early this year, something it had primarily prophesied might not happen until 2016. In Asia, China’s Shanghai Composite went up 0.3% to a 2014 peak. China’s exports bounced 10.6% in January last year, well above anticipations of a 0.1% increment. Japan’s Nikkei Stock Average got 0.6%.
In the corporate arena, TripAdvisor advanced 7.2%, following the travel-review website reported its revenue growth that outdone forecasts, while earnings met estimates on Tuesday. Watch designer Fossil Group gained 3.5% after net profit and revenue surpassed its prediction. Lorillard decreased after the cigarette maker dropped 5% that reported a smaller quarterly profit, while Procter & Gamble fell 1.7%, which led the Dow lower, after cutting down its annual profit forecast. Cisco Systems sank 4.2% on Wednesday’s trading. The network-equipment giant’s fiscal 2nd quarter profit matched a stern prediction it had reported in November after the close.
The material has been provided by InstaForex Company – www.instaforex.com
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