Stock market set to rise in thin post-Christmas trade
December 26, 2019
Amazon’s ‘record’ holiday sales helps Nasdaq blow past 9,000
December 27, 2019The main indices of the New York Stock Exchange broke records Monday, supported by the sharp rise in the action of Boeing, whose boss announced his resignation, as well as by a wind of commercial optimism after Chinese announcements.
Its flagship index, the Dow Jones Industrial Average, gained 0.34% to 28,551.53 points.
The highly technological Nasdaq rose 0.23% to 8,945.65 points, and the broad S&P 500 index climbed 0.09% to 3,224.01 points.
New York indices, Dow Jones at the head, were driven by the strong progression of the title of Boeing (+ 2.91%), which jumped after the announcement, shortly before the opening, of the resignation of its boss , Dennis Muilenburg.
In difficulty for months due to the 737 MAX crisis, Mr. Muilenburg was forced to leave the American aircraft manufacturer and will be replaced, from January 13, by David Calhoun, current chairman of the board of directors.
Two accidents to its flagship 737 MAX in less than five months plunged Boeing into the most serious crisis in its history.
Market players also welcomed Beijing’s decision to lower a series of tariffs on more than 850 food products from January 1 and nearly 500 technological goods on July 1.
These announcements concern all of Beijing’s trading partners and do not seem to be directly linked to the ongoing dispute with the United States, even if certain products on the list, such as orange juice and avocados, may be of particular interest to American producers.
US President Donald Trump announced Friday that he had made “progress” in negotiations on a preliminary agreement with China which is expected to be signed “very soon”.
For Peter Cardillo of Spartan Capital Securities, these developments are “another step forward towards a trade agreement, which could reduce the impact of the trade war on global growth”.
Among the indicators, durable goods orders for November fell 2% to $ 242.6 billion, falling to their lowest level in six months, according to data released by the Commerce Department. Analysts had expected an increase of 1.4%.
Sales of new homes in the United States rose 1.3% in November, with 719,000 transactions completed. However, this is less than the 735,000 sales expected by analysts.
On the bond market, the 10-year rate of American debt was up, at 1.934% around 9.50 p.m. GMT, against 1.917% at the previous closing.
The week will be shortened in New York Square, Tuesday’s session ending earlier than usual and Wall Street being closed on Wednesday, Christmas Day.
Tesla gained 3.4% to $ 419.22, its highest level ever.
In August 2018, Elon Musk, the emblematic founder of the manufacturer of high-end electric vehicles, had caused trouble by announcing that he intended to withdraw his business from the stock market if the action reached 420 dollars. After a complaint from the American stock market policeman, who accused him of cheating investors, the whimsical billionaire was forced to give up his post as chairman of the board of Tesla.
“Wow … The action is so high lol,” said Mr. Musk on Twitter during the session.
