Friday, November 15, 2019
Encouraging signals in the trade dispute heave the US stock exchanges to new highs. The Dow Jones can even hold its record high. Strong quarterly reports in the tech sector are driving the indexes.
For the first time in its history, the Dow Jones Index has surpassed 28,000 points. Already at the beginning of trading, the records had been tumbled – driven by renewed hopes in the US-Chinese trade dispute. The US leading index gained 0.8 percent to 28,004.89 points. The technology-heavy Nasdaq moved 0.7 percent to 8540.83 points and the broad S & P 500 gained 0.8 percent to 3120.46 points. Dow Jones 28.004.89 "Markets cling to the idea that there will be a deal," said SEB strategist Per Hammarlund. The economic adviser to US President Donald Trump, Larry Kudlow, according to an agreement in the dispute with China could soon stand. An optimistic outlook by US chip equipment manufacturer Applied Materials helped semiconductor companies to make a profit. The world's largest chip maker expects higher revenues than analysts expect, thanks to strong demand for first-quarter processor chips. Applied Materials shares rose by nearly nine percent. Advanced Micro Devices and Micron shares increased by up to 1.9 percent. Relieved, investors responded to JC Penney's quarterly results. The shares of the troubled US department store chain gained about nine percent. The loss was lower than feared at $ 93 million. In the same period of the previous year, the minus was almost twice as large. A quarterly result over market expectations brought Farfetch the largest price jump in the company's history. The shares of the online luxury goods retailer jumped nearly 28 percent. The company doubled its revenue to $ 255.5 million. The loss was lower than feared at $ 0.28 per share. The hope for an agreement in the customs dispute also spurred Europe's stock exchanges. The Dax also headed for a new high for the year, gaining 0.5 percent to 13,241.75 points. The barometer is only just under 70 points from its annual peak and the all-time high is 355 points away. The EuroStoxx50 rose 0.6 percent to 3711.61 points.