Us Indices Hold After Yesterday’s Records
At today’s close, the US stock market finished flat after posting record highs yesterday. The momentum slowed, as the S&P 500 held at 2,000 (and actually gained by 0.05%), the Nasdaq fell 0.02%, and the Dow Jones gained by 0.09%.
Wednesday, August 27, 2014
Because there was little to report on the indices’ movement, economists turned their focus to the rest of the week. Tomorrow will bring the second forecast on US second-quarter revenue growth, with consumer confidence data to come on Friday.
Flurry of deals activity influences market
According to the Wall Street Journal, a number of recent mergers and acquisitions have stimulated the stock market this year, rousing excitement in some investors.
"Deals activity is likely to continue," Paul Karos, senior portfolio manager with Whitebox Mutual Funds, told the Wall Street Journal." So we're looking for names where there are strong fundamentals, and where there might be activist potential."
Shares for Burger King and Tim Hortons dipped following a deal that united the two restaurant chains. Burger King’s purchase of Tim Hortons has been criticized as a ploy for the fast food giant to avoid the steep corporate tax rate of the United States by moving its headquarters to Canada, where Tim Hortons is primarily located.
Investors still wary
Bloomberg reported that, despite the US gains and a global increase of stock value to $66 trillion, investors are nervous. Though the market is approaching levels of 14 years ago – still perhaps another year away – the mood is much different.
"People are still worried," William Rutherford, who owns an investment firm in Portland, Oregon, told Bloomberg. "They don't trust the market, they don't trust the rally and they don't trust Wall Street."
That stands in stark contrast to the tech bubble of 2000, during which people with no investing experience quit their jobs to hit Wall Street. Unfortunately, when the bubble burst shortly thereafter, many people were ruined. It has taken until now for the market to recover. As a result, traders are making safer, steadier decisions.
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