Indices End Higher, Interest Rates The Focus Once Again

The New York Stock Exchange ended sharply higher Friday, buoyed by the hope that by Sunday evening there will be an adopted agreement for Greece to escape default and remain a member of the eurozone.

The Dow Jones ended with a gain of 211.79 points, or 1.21%, to 17,760.41. The S&P-500 gained 25.31 Points (+ 1.23%) to 2,076.62 and the Nasdaq Composite rose 72.30 points (+ 1.53%) to 4,997.70.

The market briefly reduced its gains in the afternoon after a speech by the president of the Federal Reserve Janet Yellen, in which she expected an increase in interest rates by the end of the year, while evoking persistent weaknesses in the labor market.

Investors have built in for a long time the prospect of a first rate hike this year but they remain divided on the precise timing of it. But on this point, Janet Yellen did not provide any new Friday their index.

Meanwhile, finance ministers of the euro zone must meet Saturday in Brussels to decide on the launch of a third plan of aid to Greece in exchange for reforms.

“Investors are betting that a deal on Greece will be concluded by Sunday and decreased risk boosts shares. The disappearance of the risk of an exogenous shock results in improving the state of mind market, “said Jim McDonald, head of the investment strategy of Northern Trust Asset Management.

The rise of the day benefited the entire coast, the ten major sector indices of the S & P 500 is displayed in the green fence.

The balance of the week, however, is much more mixed, several days having been sealed by fears about Greece and the fall in Chinese equity markets. In five sessions, the Dow rose 0.17%, the S & P 500 was flat and the Nasdaq yielded 0.23%, its third consecutive week of decline.

Rebound In Asia

Along with relaxing on the front of the Greek debt, the continued rebound of the Shanghai Stock Exchange, which gained almost 11% in two sessions, amid government support measures, also helped reassure investors.

The index The Bank of New York Mellon listed Chinese stocks in the US took 2.37% Friday.

The values, the cable operator Cablevision, jumped 7.32% after the publication by the Wall Street Journal in an interview with French businessman Patrick Drahi in which he explains will make new acquisitions on the market US.

United Technologies and Lockheed Martin took 1.16% and 1.07% respectively. According to a source close to the matter, Lockheed Martin is a favorite for redemption at United Technologies Sikorsky, its helicopter subsidiary, which could be valued more than eight billion dollars (7.2 billion euros).

The reassuring news from China, one of its main markets, have also allowed Apple to rebound 2.67% after five consecutive sessions of decline, an unprecedented series since January that he had lost more than 5 %.

About 5.67 billion shares were traded Friday on the various American trading platforms according to data from BATS, against 7.03 on average since the beginning of the month.

The bond market, however, has suffered from the rebound in equities and renewed appetite for risk. The yield on 10-year Treasuries has formed part up to 2.4025% in the late afternoon, up ten basis points compared to the previous day.

Previous Post »  
Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at

Comments are closed.