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new york (reuters) – wall street ended up on thursday, which is supported by strong economic activity indicators, but still moderate inflation should not push the federal reserve to step up the pace of rate hikes.
steve mnuchin, the us treasury secretary, also gave a boost to the market, saying that the government had a comprehensive plan for tax reform, it still has to be adopted before the end of the year.
president donald trump reiterated wednesday his intention to reduce the corporate tax rate to 15% from 35% currently.
the dow jones industrial average had 55,67 points, or 0.25% of 21.948,10 and the s & p 500, more points, or 0.57% to 2.471,65 14.06.
the nasdaq composite was done on his side on a gain of 60.35 points 6.428,66 (0.95%).
the increase of the s & p 500 is the benchmark of american managers, get 0.05% throughout the month of august, to sign a fifth consecutive month of increase. the dow jones industrial average, for its part, has advanced to 0.26% on the month and the nasdaq of 1.27%.
the day after the announcement of an increase of 0.3% in the second quarter, the highest for more than two years ago, the commerce department reported an increase of 0.3% of the consumption expenditure of households in july, after an increase of 0.2% in june.
but the consumer price index, excluding energy and food products was up 1.4% over the course of a year, its lowest level since december 2015, away from the 2% target of the federal reserve.
“the outlook for the us economy and the world economy is still relatively positive, and most investors are not risk of recession. in this context, the market should be focused, “says michael sheldon, in charge of investment in broad financial group. and the fact that inflation remains below the target, the fed could help to raise rates in the fourth quarter.
the probability of a rate increase in december was assessed in 36% against 43% a month ago, as the barometer fedwatch cme group.
weekly unemployment applications have also shown a slight increase, without calling into question the strong trend in the labour market.
investors expect the number of jobs created in august, which will be published on friday, and may determine the rate expectations. economists polled by reuters expect 93 average 180 posts, following the 209000 announced in july.
the euro is on the rise
nine of the 11 major sectoral s & p 500 index were up, in the compartment of the health that was 1.69%.
unitedhealth (1.54%) and pfizer (+ 1.41%) boys used up all the first place on the dow jones and the nasdaq biotech index (2.84%) in the fourth meeting of the a consecutive increase and reached the highest in a year.
general electric, an increase of 1.11%, also supported the dow jones industrial average. a source in the case told reuters that the new director general john flannery was contemplating the elimination of jobs in order to reduce costs and increase profits.
the highest increases of nasdaq, the retailer shoe carnival flew to 22,41% after the release of better than expected quarterly results.
the bookseller barnes & noble was 6.90% amid rumors of sale.
the decline is “dollar general fell 5.43% after the announcement of a decline in margins, despite an increase in sales.
the food group, campbell soup was 8.06% $46.20 after results have disappointed and a warning on its turnover.
the volume has increased to 6.2 billion shares traded, compared with an average of 5.8 billion during the past 20 sessions.
“people come back from vacation and realize that the market remained close to its record of a hurricane (texas) and new north korean missile has not done”, robert w. baird ditmichael antonelli, in milwaukee. there is no doubt that the upward trend is still there. “
with the closure of refineries due to the passage of tropical storm harvey in texas and now in louisiana, the price of gas went up by 13% to 28% gain in a week, and the oil has rebounded to 3%.
on the foreign exchange markets, the dollar has reversed its gains for the day in response to steven mnuchin interview on cnbc. when asked about the level of the dollar, the secretary of the treasury has determined that a weaker dollar is better for the u.s. trade.
the eur / usd was 11910 at the end of the day, an increase of 0.2% in the meeting and to more than 13% this year. the index was 0.3% for the us dollar, a decline of 9% from 1 january.
gold has gained 1% on the spot market, and the performance of the us treasury debt fell to 2.12%, compared with 2.15%, in response to the moderation in inflation in june.
(sruthi shankar and tanya agrawal in bangalore, veronica poker, for service in french)
copyright & copy;, thomson reuters
Translated by forexguides.info Team