US stocks gained today thanks to positive economic results and outlooks of some major companies. The Dow Jones index, which includes shares of thirty leading US companies, gained 0.62 per cent to end trading at 33,141.38 points. The broader S&P 500 index rose 0.73 per cent to 4,247.68 points and the Nasdaq Composite index, which includes many companies in the high-tech sector, was up 0.93 per cent to 13,139.88 points.
Interest rates
“The rise in interest rates has sparked fears of a dramatic slowdown in the economy that would impact corporate profits. We don’t see that happening yet,” said analyst Hugh Anderson of HighTower Advisors. “We have relatively strong third-quarter economic data coming in, and the results of a number of companies in various sectors are beating expectations,” he added.
Preliminary results of a survey by S&P Global today showed that growth in U.S. business activity accelerated this month. The activity index rose to a flat 51 points from September’s 50.2 points. If the index is above the 50-point mark, it signals a growth in activity.
Europe
In the Eurozone, the decline in business sector activity accelerated surprisingly this month, according to S&P Global data. The activity index fell to 46.5 points from 47.2 points in September. Analysts in a Reuters poll had forecast the index to rise to 47.4 points. “Signs of an economic recession in the eurozone are gaining momentum,” said analyst Christoph Weil of Commerzbank.
Investors are now waiting for Thursday’s European Central Bank (ECB) meeting. The ECB started raising interest rates last July to bring inflation under control. Last month, the ECB raised its key interest rate for the tenth consecutive month, by a quarter of a percentage point to 4.50 percent. But it is expected to leave interest rates unchanged on Thursday.
Source: ÄŒTK
