Trio Of Indications Suggests Strong Performance Ahead
Three key signs during the past seven days have demonstrated brighter times lay ahead for prospects on the stock market.
Monday, June 9, 2014 - 00:00
The US jobs report for last month was stronger than forecast, the European Central Bank implemented new, innovative efforts as policy measures to spur growth and development, and small business and technology stocks bounced back. In sum, that helps develop a brighter outlook among market players. Just after 10 a.m. in New York, the Nasdaq climbed 0.19%, a rise of 7.12 points to 4,328.14; the S&P 500 increased 0.09%, a lift of 1.62 points to 1,951.06; and the Dow rose 0.05%, a climb of 9.26 points to 16,933.54.
The S&P has risen roughly 5.5% thus far this year, 1.3%of which comes during the past seven days. The index achieved gains of about 30% last year. And its strong record this year thus far has generated all-time highs on 18 occasions.
So too is the Dow up thus far this year, marking gains of about 2.1%.
ECB action benefits Wall Street
Spanish and Italian bond yields dropped on Monday as European stocks marked advances for the fourth consecutive day, according to Bloomberg. Ten-year Italian yields dropped five basis points to amount to 2.71% after having dipped to 2.69% earlier during the trade session to kick off the week. Italy hosts the euro zone's third-largest economy. In Spain, the fourth-largest economy, the yield rate fell to 2.58% as the Stoxx Europe 600 Index edged up 0.1%.
The European Central Bank slashed borrowing costs late last week while also providing lending support for financial institutions. Regarding the Fed, various Indications about the denouement ahead might become clear during the Monday speech of president James Bullard with the St. Louis Fed. Bullard is slated to address a Tennessee audience regarding the economic outlook in the US. Bonds issued by Ireland also performed strongly during the Monday trade session, tracking the trajectory of counterparts in Italy and Spain. The yield on Irish bonds fell to 2.39%, marking the lowest level as long as the results have been tallied.
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