U.S. stocks rise due to weak economic data…why? Because..

Wall St. gains on Fed hopes

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  • U.S. stocks rise due to weak economic data,  as corporate earnings beat estimates and signs of slower economic growth fueled bets the Federal Reserve will maintain stimulus.
  • Of the 217 S&P 500 members that have released earnings so far, 77 percent exceeded analysts’ predictions for profit, while 53 percent beat sales estimates, according to data compiled by Bloomberg.
  • Government data showed the trade deficit in the U.S. was little changed in August and more Americans than forecast filed applications for unemployment benefits last week.
  •  U.S. consumer confidence dropped last week to an eight-month low, according to the Bloomberg Consumer Comfort Index released today.
  • Data today added to signs that economic growth is slowing, as U.S. manufacturing expanded in October at a weaker pace than forecast.
  • Six of 10 main industries in the S&P 500 advanced, with producers of consumer discretionary products adding 1 percent to lead gains.
  • Due to weak economic data, investors are hoping the Fed will continue pumping the $85Billion stimulus into the economy till March when the next Fed meeting occurs.
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Categories: Capital Markets

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