Wall Street Opens High, Dow Rose to Record High

On Monday, the US stock indexes opened much higher with the Dow hitting a record high. The investors are optimistic about earnings being higher in the second quarter. The investors have been counting on this rise in order to support the high valuations for equities with the S&P 500 trading at high estimations. Until Friday, about 73 percent of the companies beat the expectations of the analysts.

US stocks closed at high earnings after the Federal Reserve kept the interest rates unchanged. The Dow Jones industrial average grew from 97.58 points to 21,711.01 and hit a record high. Boeing increased to 9.88 percent and was responsible for the most gains on the 30-stock index. The S&P 500 reached 2,477.83.

The fed expected the Monetary policy to be steady, but the central bank wants to wind down the groundwork for a massive stimulus program in September the Nasdaq was trading low on Monday afternoon and was weighted down by tech companies like Facebook, Apple, Amazon and Alphabet. They have had a strong run for the past months and the investors were taking a few of the profits off of the table.

Oil prices also rose on Monday and made it one of the strongest months for the commodity. Snap and Discovery Communications had their shares trimmed down. Mortgage applications also rose by just 0.4 percent compared to the numbers from last week. Sales for new homes rose to 0.8 percent in June this year.

October 21, 2017 - 13:32
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