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Stocks rise after GDP report shows stable but declining growth



Stocks rose modestly at the beginning of the trade following the release of gross domestic product data, which showed that US economic growth is dropping from the overlooked trends seen earlier this year.

How are benchmarks going?

Dow Jones Industrial Average

DJIA, + 0.38%

was 55%. Or 0.2% At 25,688, while the S&P 500 index

SPX, + 0.47%

rose 6 points, also 0.2% to 281

2. Nasdaq Composite Index

COMP, + 0.59%

added 6 points to 7,649, an increase of approx. 0.1%.

What drives the market?

Investors were focused on Thursday morning on government final GDP growth growth over the last three months of 2018, which was initially estimated at a 2.6% annual rate from the previous quarter but cut to a rate of 2.2. %, which helps confirm a tendency to slow US economic growth.

The downward revision was triggered by slower consumer spending and subdued corporate investment, leaving GDP growth for the full year 2018 at 2.9%, and tying 2015 to the fastest annual growth since the 2007-09 recession.

The GDP report follows increased concerns about weak growth in China and Europe, which Wall Street investors fear has already begun to wash up on US shores, reflected in declining government debt yields, falling as Treasury prices rise.

In U.K. Prime Minister Theresa May said she would be willing to go down if her plan to inaugurate Britain from the EU was endorsed by Parliament. Legislators, however, failed to find a majority on a given road to Brexit in a series of guiding voices that added political uncertainty and began to think of the country's leadership.

An outrageous Brexit process has had the potential to disrupt the European markets and domestic market participants.

Read: Brexit Brief: UK Parliament Can Revise Its Unfinished Votes

At the US-China Trade Negotiation, Beijing officials have made unprecedented proposals to resolve a lengthy customs dispute with Washington, Reuters reported, citing USofficials. The report said the proposals are aimed at closing charges that China systematically steals US intellectual property rights.

This report comes as British officials accused Huawei Technologies Co. not to address security flaws in his products and said the company has not demonstrated a commitment to fix them

What do strategists say?

"Global growth stagnates both at home and abroad, and this type of GDP reading can flash as a warning signal to the markets that there is more turbulence ahead," said Mike Loewengart, vice president of investment strategy at E-Trade Financial Corp wrote in an email. "Some may see this as a data point confirming their concerns that we are heading for the end of the business cycle, especially after the reverse yield curve news last week."

"That said, there are a lot of positive indicators out there-strong job numbers, an increase in wages and a solid earnings season-to pump some confidence back into the market," he added.

"Washington brought a little peace of stock overnight after US officials said progress in all areas was recorded in the last round of trade negotiations with Beijing. China has made more specific proposals for technology transfers and with a broader scope than before. news that is especially welcomed by investors such as intellectual property rights remains one of the key points of the negotiations, "wrote Pierre Veyret, technical analyst at ActivTrades in a Thursday research note.

"The FTSE-100 index in London is the strongest practitioner in Europe so far today after the British parliament has rejected all alternative Brexit options proposed by Prime Minister Theresa May," he wrote.

Which stocks were in focus?

Shares of Shipping Companies Lift Inc .


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