U.S. Stocks rise due to economic data supporting the continuation of Federal Stimulus
October 29, 2013
Tuesday October 29th, 2013
- The Dow and S&P 500 ended at record highs on Tuesday after economic data supported views that the Federal Reserve would keep its stimulus intact for several months.
- In the latest economic data, U.S. consumer spending rose in September, but another report showed consumer confidence fell sharply in October because of worries about the impact of the partial government shutdown.
- Due to sluggish growth in the economy, the impact of the 16 day government shutdown will have more evidence on how it negatively impacted the government.
- More companies have been beating analysts’ earnings expectations than revenue expectations. With results in from 281 of the S&P 500 companies, 68.7 percent have topped profit expectations, above the long-term average of 63 percent, while just 52.5 percent have beaten revenue estimates, below the 61 percent rate since 2002, based on Thomson Reuters data.
- The Dow Jones industrial average gained 111.42 points, or 0.72 percent, to end at 15,680.35, a record close. The Standard & Poor’s 500 Index rose 9.84 points, or 0.56 percent, to finish at 1,771.95, also a record closing high.