|Day's Range||24,459.03 - 24,673.24|
|52 Week Range||21,712.53 - 26,951.81|
Chief Investment Officer Nancy Davis of Quadratic Capital Management says “we’re in a new regime” in the markets with less liquidity and many institutional investors going into the private sector since the financial crisis. Yahoo Finance’s Alexis Christoforous speaks to her.
The government shutdown is in day 27, and its effects are starting to ripple through the economy and financial markets. Yahoo Finance's Kristin Myers reports. Plus Andy Busch, former CFTC, Chief Market Intelligence Officer gives his take to Yahoo Finance's Julie Hyman, Adam Shapiro and Brian Sozzi.
A new report from Goldman Sachs finds the wealthiest 1% of Americans own half of all stocks held by American households. Yahoo Finance's Heidi Chungs talks with Julie Hyman and Adam Shapiro.
The Dow Jones Industrial Average is up 1.1%, to 24,648.88 in recent trading. The S&P 500 and Nasdaq Composite are both surging 1.2%.
The Dow Jones Industrial Average posted solid gains on Friday. The Dow, the S&P 500 and the Nasdaq have closed with gains in eight of the past 10 trading sessions. fell 9.1% after the electric vehicle company said it was cutting about 7% of its workforce and warned about fourth-quarter profit.
Stock-market bulls attempt to extend a winning streak to a fourth day Friday, buoyed by news reports stoking hopes for progress in trade talks between the U.S. and China.
Investing.com – The Dow closed higher Thursday but gave up a large portion of its gains after the Trump Administration downplayed a report the U.S. was considering easing tariffs on China to hasten a trade deal.
Adding to strength in equities and supporting U.S. Treasury yields was data that showed U.S. manufacturing output increased the most in 10 months in December. Wall Street was set for a fourth week of gains, with foreign trade-sensitive industrials up 1.6 percent and leading sector gains for the S&P 500. The trade hopes followed a report on Thursday that U.S. Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports.
The Cboe Volatility index has tumbled in recent trade and is on pace for its steepest monthly slide since March of 2016, according to FactSet data. Wall Street's so-called "fear index," uses S&P 500 options to calculate expectations for volatility over the coming 30 days, and tends to trade inversely to stocks. Equity benchmarks, following a bruising 2018, have experienced a mutltiday stock-market rally that has been partly underpinned by hope of a resolution between China and the U.S. on trade relations. That, in turn, has driven the the volatility index sharply lower. Investors tend to use the gauge partly to hedge against declines in the market, with rising prices equating to a higher cost of such coverage. Most recently, the index was at 17.40 and has declined about 31.55% thus far in January (markets are closed on Jan. 21 in honor of Martin Luther King Jr.). That level of decline would represent the most severe for the gauge since it fell 32.12% in March of 2016. The index's drop in 2016 had also been fueled by relief following concerns about the health of the Chinese economy, which continues to be a source of concern for market participants after data out of Beijing has shown clear signs of slowing down. Still, market participants have waxed optimistic that tensions between Beijing and Washington, if resolved, would help to stem any economic contraction in global markets. The VIX's historical average stands at around 19 or 20. The S&P 500 and the Russell 2000 index have both enjoyed the best start to a year since 1987. And all of the main stock indexes, including the Dow Jones Industrial Average and the Nasdaq Composite Index were looking at solid weekly and monthly gains.
11:20 a.m. The Dow Jones Industrial Average has gained more than 200 points on reports that China has offered to eliminate its trade deficit with the U.S. by 2024. The Dow has risen 233.77 points, or 1%, to 24,603.87, while the S&P 500 has gained 1.1% to 2664.48, and the Nasdaq Composite has climbed 1.1% to 7162.20. Bloomberg reported that China had offered to reduce its trade deficit with the U.S. to $0 by 2024, the last year of President Donald Trump’s presidency if he were to get re-elected.
The rally continues. Two of the most broadly followed equity indices are now approaching levels of potentially significant high-volume resistance. For the past few sessions, while maintaining our near-term positive outlook for the major equity indices, we have suggested the potential for some consolidation/retracement of the recent gains.