Stocks returned to a safety and positive territory, despite the latest reading on manufacturing activity it has showing growth on the most important stocks exchanges of the country.
Dow Jones industrial average rose 117.52 points to 17,891.16, meaning it rose about 0.7 percent. The Standard & Poor’s 500 index went up about 16.13 points to 2,081.43 that mean it moved positively 0.8 percent. NASDAQ rose 42.24 points to 4,817.59, which means a growth of about 0.9 percent. Why is this good new? When last week the market had its biggest decline since February.
Not every gear worked out
Recently the damaged technology stocks such as Amazon.com and Microsoft all posted gains, helped to end the seven-day losing streak in the NASDAQ composite, but some other companies didn’t went that good.
On this Monday madness, many technology stocks were in and some didn’t showed up at all this, which was the case of Apple that has been falling 0.15 percent from $93.74 to $93.64. Apple has fallen eight days in a row and has lost 16 percent of its value in the last two weeks.
Let’s remember that Apple reported its first quarterly decline in profits in years, which waved through the stock market. This made investors to move into safer investments. The Dow Jones utility index, a collection of 15 dividend-paying utility companies, is up more than 14 percent this year.
Not so big in Japan?
Japan’s Nikkei stock index fell more than 3 percent overnight as markets reopened after a holiday. The market fell as Japanese investors continued to react negatively to the Bank of Japan’s decision to leave interest rates unchanged.
The Japanese yen also continues to climb sharply that hugely affects Japanese exporters and could explain why the stock market went down in Japan.
David Lebovitz, who is a global market strategist at J.P. Morgan Funds, stated that there’s a risk-off sentiment in the market right now. “It’s a bit concerning. Investors are beginning to question whether monetary policy can really push Japan’s economy forward and generate growth,” Lebovitz said.
On the other side, individual companies also got some steps forward, just like Halliburton that rose after a $34 billion merger with Baker Hughes. It was called off in the face of antitrust concerns from the Justice Department. Halliburton rose 74 cents to a final amount of $42.05, which means a growth of 1.8 percent. On the other hand Baker Hughes fell 96 cents to $47.40 meaning it slipped 2 percent.
Other example is The Apollo Education Group, which runs the University of Phoenix, rose sharply after a group of investors raised its bid for the company. Apollo rose 97 cents, or 12.4 percent, to $8.77.
Source: Express & Star