Dow rises to a fresh record close
5 December 2016
- From the section Business
(Close): Rising bank stocks and encouraging economic data helped push the Dow Jones Industrial Average to a new record.
The Dow rose 45 points, or 0.2%, to 19,216, with shares in Goldman Sachs up 2.3% and JP Morgan rising 2%.
Nike was among the top risers on the Dow – up 2.7% – after HSBC raised its rating on the company’s shares.
Confidence was boosted by data showing activity in the US services sector rose to a one-year high in November.
Many economists expect that the strengthening US economy will prompt the US Federal Reserve to raise interest rates, when it meets next week.
“We have a situation where the Fed is probably going to raise rates next week and this time raising rates is being viewed as a positive, mainly because of its impact on the financial stocks, which are all doing quite well today,” said Peter Tuz, president of Chase Investment Counsel.
‘Scrambling’ for shares
US shares have been gaining ground since the election on 8 November, on hopes that polices under a Donald Trump administration will boost the economy.
“A lot of people were negative going into the election, or cautious, so now they’re scrambling year-end to own stocks,” said Alan Lancz, president of investment advisory firm Alan B Lancz & Associates.
US markets followed the lead of most of the European indexes by shrugging off the results of Italy’s referendum on changes to the constitution.
“We’re back in a rally mode,” said Art Hogan, chief market strategist at Wunderlich Securities.
This post was written by FSB News