After receiving good news on jobs, productivity, and retail sales, stocks climbed. The Dow climbed back above the psychologically important 10,000 level. Traders are optimistic as they await payroll data for the month of October, which will be released at before the markets open on November 6.
All of the major indices climbed. The Dow, as noted, climbed 2.1 percent to close at 10,006, with all 30 of its components closing higher. Cisco rose by 2.8 percent after its CEO had positive comments on tech spending and the economy as a whole. The S&P 500 also rose, gaining 1.9 percent to close at 1,067. And the tech heavy Nasdaq did the best of all, climbing by 2.4 percent to 2,105. That was the best gain seen by the Nasdaq since July.
Investors viewed the news that initial unemployment claims fell to their lowest level since March as a sign that the labor market is improving, even though hiring has yet to resume. Also boosting stocks was news from the International Council of Shopping Centers and Goldman Sachs that retailers showed a sales increase for the second month in a row after a long string of declines.
Positive comments on banks from the analyst who recommended selling Lehman Brothers four months before it filed for chapter 11 helped boost financials. According to Richard Bove, the risk of default is much lower now since banks have raised the amount of cash on their balance sheets. Bove added that banks could possibly double in price, since the levels they are trading at now are not that high compared to where they've fallen from.
The focus now shifts to October payrolls. Some analysts believe that the good news on initial unemployment claims means that the October payroll numbers will be better than expected. If that is the case, and the data indicates an improving labor market, it is likely we will see stocks close the week out on a positive note.
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All of the major indices climbed. The Dow, as noted, climbed 2.1 percent to close at 10,006, with all 30 of its components closing higher. Cisco rose by 2.8 percent after its CEO had positive comments on tech spending and the economy as a whole. The S&P 500 also rose, gaining 1.9 percent to close at 1,067. And the tech heavy Nasdaq did the best of all, climbing by 2.4 percent to 2,105. That was the best gain seen by the Nasdaq since July.
Investors viewed the news that initial unemployment claims fell to their lowest level since March as a sign that the labor market is improving, even though hiring has yet to resume. Also boosting stocks was news from the International Council of Shopping Centers and Goldman Sachs that retailers showed a sales increase for the second month in a row after a long string of declines.
Positive comments on banks from the analyst who recommended selling Lehman Brothers four months before it filed for chapter 11 helped boost financials. According to Richard Bove, the risk of default is much lower now since banks have raised the amount of cash on their balance sheets. Bove added that banks could possibly double in price, since the levels they are trading at now are not that high compared to where they've fallen from.
The focus now shifts to October payrolls. Some analysts believe that the good news on initial unemployment claims means that the October payroll numbers will be better than expected. If that is the case, and the data indicates an improving labor market, it is likely we will see stocks close the week out on a positive note.
Tolles Gewinnspiel, vielen Dank für den Tipp