A brighter optimism about the US economy is likely to help the S&P 500 continue pushing past record highs today.
Wednesday, May 28, 2014
Orders for durable goods climbed, representing an increase that investors, analysts and traders did not anticipate, causing an air of optimism on to markets as the shortened week begins. Just after 10 a.m. in New York, the Nasdaq climbed 0.61%, a rise of 26.08 points to 4,211.72; the S&P 500 increased 0.43%, a lift of 8.23 points to 1,908.8; and the Dow rose 0.32%, a climb of 53.94 points to 16,660.21.
As Summer 2014 begins following Memorial Day Weekend, the US Department of Commerce released data stating that goods projected to last at minimum 36 months climbed 0.8 % after having risen 3.6% in April. A Bloomberg-administered poll of 68 economists indicated a loss of 0.7%, thus the Commerce Department figures trumped survey results.
ECB slated to meet in early June
Stock index futures also were spurred higher by expectations that the European Central Bank is poised to slash borrowing costs early next month, according to Reuters. Mario Draghi, president of the ECB, said on Tuesday that he and his peers will be vigilant about negative price spirals in the euro zone. With a meeting scheduled for early next month, speculation is climbing about the bank cutting interest rates as a method of answering the reduced rate of inflation and week lending. Another method of intervention that still is under consideration is moving forward with asset purchases.
MarketWatch reports the three markets are poised to continue climbing as the year proceeds. They got a boost last week when housing sales data indicated that April figures climbed. Existing home sales increased for the first time thus far this year and new single-family home sales rose more than 6 %, which proved to be a key component that spurred the three markets' performance.
However, the Commerce Department is poised to release data about the US gross domestic product from the first quarter of the year later this week, for which a decline of 0.6 % is likely, according to economists surveyed by the news source. If that occurs, that would mark the first quarterly drop of GDP since 2011's first quarter.
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