The United States’ stock market closed on a high note on Monday. This comes as the Dow Jones leads gains with investor’s continued focus on corporate earnings and the possibility of tax cuts.
What are the benchmark numbers?
The S&P 500SPX, +0.65% having gained 3.29 points, with the telecoms and financial service sector players topping the total gains.
The Dow Jones Industrial Average, +0.69% increased 72.09 points and the Nasdaq Composite, +1.06% moved up 7.92 points or 0.1% to 6.790.
The Strategists’’ opinion
Diane Jaffee, the senior portfolio manager at TCW says “The consensus trade on Wall Street has been buying European equities versus U.S. equities, but that’s on the condition that Europe is politically stable. When Merkel could not get her coalition, there was a short-lived flight to quality,”
She also specified that amid the low (and even negative) bond yields of late, equities remain a very attractive option for many investors.
Robert Doll, the chief equity strategist at Nuveen Asset Management LLC said, “Market sentiment has grown less positive in recent weeks, with investors more concerned about tax policy, fuller valuations and a sense of complacency. From a fundamental perspective, investors are also becoming worried about the flattening yield curve and high yield market weakness, which tend to be bearish signals for equities,”
What the data says about the economy
The US’s foremost economic index boosted 1.2% in October and this suggests no ease in a continuously growing US economy with the end of the 2017 calendar year fast approaching.
How are other assets doing?
The Euro fell to $1.17 following the breakdown of the German government’s coalition talks, further fueling the flames of uncertainty over the future of Angela Merkel as the leader of the country.
Oil futures and Gold prices also fell (an event which is attributed to a stronger dollar).