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US stocks edge higher


News » Health and Beauty
Nigeria

26th June 2014

United States stocks edged higher on Wednesday as investors continued to find value in equities over other asset classes despite the latest economic data coming in below expectations.

Reuters reported that the US economy contracted in the first quarter at a 2.9 per cent annual rate, a much steeper pace than previously estimated, though activity was affected by a harsh winter, and there are indications that growth has since rebounded. In another negative data point, US orders for durable goods unexpectedly fell one per cent in May.

Futures initially fell on the news, but Wall Street showed signs of strength in early trading. The Dow and the S&P 500 remain within striking distance of record levels.

“As long as investors believe the economy will keep growing, and everyone expects growth in the second quarter, the lesser evil will be to buy equities at a modestly higher valuation, since bonds and cash don’t represent better values,” said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.

The Dow Jones industrial average rose 32.24 points or 0.19 per cent, to 16,850.37. The S&P 500 gained 5.74 points or 0.29 per cent, to 1,955.72. The Nasdaq Composite added 16.61 points or 0.38 per cent, to 4,366.97.

The S&P 500 hit an intraday record high on Tuesday before concerns over Iraq turned indexes sharply lower in afternoon trading. Those tensions remained in focus after militants in Iraq attacked one of the country’s largest air bases. The first US teams arrived to help Iraqi security forces counter the violence.

 

Article Credit: Punch News

Updated 5 Years ago
 

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