Saturday, 24 February, 2018

Wall St. eases as oil prices, General Electric fall

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Dow Jones Ploughs through $26,000 Milestone at Record Pace America Dow Jones Ploughs through $26,000 Milestone at Record Pace
Nellie Chapman | 20 January, 2018, 04:09

As trading progressed Tuesday, investors engaged in some profit taking, and the Dow slipped back below 26,000 to close at 25,792.86.

Fourth-quarter earnings reporting is well under way helping the Dow over the 26,000 mark for the first time.

On Thursday in early trade, the Dow Jones Industrial Average was down 17.44 points, or 0.07 per cent, at 26,098.21, the S&P 500 was down 1.18 points, or 0.04 per cent, at 2,801.38 and the Nasdaq Composite was down 6.11 points, or 0.08 per cent, at 7,292.17.

The Dow closed above 26,000 for the first time Wednesday, continuing an early-year stock surge that has pushed the USA market to fresh records. The easiest way to rebalance the index is for the company or companies that are the largest weights to split their stocks, as the Dow 30 is based on prices of the stocks in the index, not market caps or any other metrics. As a serious shareholder, you need to look at plentiful factors that can assist you determine whether any given stock is a good investment.

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"Investors are liking the fact that companies are talking up earnings, more than they have done in the past".

"Not only is the US coming off a strong quarter, but the new tax reform measures are continuing to provide a boost, with investors keen to hear more about what impact this will have on futureearnings", said Craig Erlam, senior market analyst at online foreign exchange broker Oanda.

"Given the deteriorating trend. we believe more investors might start to question the achievability of that target going forward", Helvea analyst Andreas von Arx told Reuters.

"Whatever immediate concern the government shutdown brings to the market, I think it will swiftly overcome", Luschini said. However Zaccarelli warns:"The speed at which the market has moved higher in the past two weeks is unsettling and the risk of overheating this year is rising". "The more expensive the market gets, arguably the more risky it becomes".

The benchmark 10-year yield rose to trade at 2.62 percent, near a multi-year high.

Stocks showed a lack of direction earlier the session, with traders keeping an eye on Capitol Hill as lawmakers attempt to reach a last-minute agreement on a spending bill. "But the market remains overbought, and an overbought market is susceptible to a pullback".

What's more, the average cash balance of fund managers fell to 4.4% in January, a five-year low, according to BofA. Analysts mean recommendation for the stock is 2.70.

On the losing front, PAVmed Inc (NASDAQ:PAVM) shed over 28% to US$1.82 as the company reported a public offering of stock.

The S&P energy index fell 0.65 percent as Brent crude oil shed some of its recent gains, falling almost $1 per barrel. Earnings growth of close to 15% is now also expected for the final three quarters of 2018. "And that's the bedrock for stock prices", Stuart Varney said on "Fox & Friends".