Stocks lift after Fed’s annual conference in Jackson Hole

28Aug

Stocks lift after Fed’s annual conference in Jackson Hole

 

Stocks rallied Friday as traders cheered comments from Federal Reserve Chairman Jerome Powell at the annual central bank conference in Jackson Hole, Wyoming, that point to stronger-than-expected economic growth.

The Dow Jones Industrial Average closed up 247.48 points, or 0.7 per cent at 34,346.90, after being up more than 300 points at session highs. The S&P 500 gained about 0.7 per cent to close at 4,405.71, while the tech-heavy Nasdaq Composite advanced 0.9 per cent to 13,590.65, which was enough to help both indexes snap a three-week losing streak. However, the Dow logged a second-straight week of losses.

Optimism was fueled, in part, by Powell’s confidence in continued economic growth in the US, as he cited “especially robust” consumer spending and early signs of a recovery in the housing market. He reiterated the central bank’s commitment to pull inflation back down to its 2 per cent goal.

Powell commented, “the economy may not be cooling as expected. So far this year, GDP (gross domestic product) growth has come in above expectations and above its longer-run trend, and recent readings on consumer spending have been especially robust.”

“In addition, after decelerating sharply over the past 18 months, the housing sector is showing signs of picking back up.”

Turning to China, the nation has halved the stamp duty on stock trading, effective on Monday, in a bid to revitalise the capital market and enhance investor confidence amid a struggling economy; the finance ministry's decision follows reports of a planned reduction after a significant share index drop to nine-month lows.

Overall, the S&P 500 energy and consumer discretionary sectors both rose at least 1 per cent on Friday. Petroleum company Valero Energy and toymaker Hasbro were among the day’s biggest gainers, advancing 2.8 per cent and 5.7 per cent, respectively. 

Futures

The SPI futures are pointing to a 0.3 per cent gain.

Currency

One Australian dollar at 7:40 AM was buying 64.12 US cents.

Commodities

Gold lost 0.37 per cent. Silver added 0.03 per cent. Copper lost 0.25 per cent. Oil gained 0.99 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.07 per cent, Frankfurt also added 0.07 per cent, and Paris closed 0.21 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei dropped 2.05 per cent, Hong Kong’s Hang Seng fell 1.40 per cent while China’s Shanghai Composite closed 0.59 per cent lower.

On Friday, the Australian sharemarket closed 0.93 per cent lower at 7,115.

Ex-dividends

Australian United Investment Company (ASX:AUI) is paying 20 cents fully franked
Aurizon Holdings (ASX:AZJ) is paying 8 cents 60 per cent franked
Challenger (ASX:CGF) is paying 12 cents fully franked
Coronado Global Resources Inc (ASX:CRN) is paying 0.5325 cents fully franked
Domino's Pizza Enterprises (ASX:DMP) is paying 42.6 cents unfranked
Diversified United (ASX:DUI) is paying 9 cents fully franked
ECP Emerging Growth (ASX:ECP) is paying 2.9 cents fully franked
Hansen Technologies (ASX:HSN) is paying 5 cents 30 per cent franked
Pinnacle Investment (ASX:PNI) is paying 20.4 cents fully franked
Santos (ASX:STO) is paying 13.5577 cents unfranked
Winton Land (ASX:WTN) is paying 1.9954 cents unfranked

Dividends payable

Waypoint REIT (ASX:WPR)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2023 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

29Apr

Wall St slips as Fed holds rates: ASX to rise

29 Apr 2021 - The ASX is set to rise despite Wall St dipping into the red. US stocks slipped as the Federal Reserve held rates and maintained their support for the economy. Australian shipbuilder Austal (ASX:ASB) is set to sell 40% of its stake in a shipbuilding company in China.

Read More
12Aug

Commonwealth Bank (ASX:CBA) profit drops 11.3%: ASX to open higher

12 Aug 2020 - The ASX looks set to open higher this morning despite shares falling at the end of trade in New York. New Zealand has been rocked by four new coronavirus cases after being Covid-19 free for 102 days. Prime Minister Jacinda Ardern has put Auckland into level three restrictions for three days as a "precautionary approach". Gold has dropped over US$100, facing its worse day in seven years. Commonwealth Bank (ASX:CBA) has reported an 11.3 per...

Read More
18Aug

RBA confirms severe economic downturn: Aus shares close 0.8% higher

18 Aug 2020 - The Australian share market rose at the open and closed 0.8 per cent higher. The Reserve Bank of Australia confirmed the economic downturn in Australia was the most severe in many decades, and staff estimates suggested a decline in GDP of around 7 per cent and a contraction in hours worked of around 10 per cent. That’s according to minutes released from the recent meeting.

Read More
24Mar

Westpac (ASX:WBC) consider potential sales: ASX closes 0.5% higher

24 Mar 2021 - It has been a mostly positive day of trade for the Australian share market. At the closing bell the S&P/ASX 200 index closed 33 points higher, or 0.5 per cent higher to finish at 6,779. Westpac (ASX:WBC) has already placed a number of businesses into a Specialist Businesses Division, for ultimate exit.

Read More
17Dec

November jobless rate fell to 6.8%: ASX closes 1.2% higher

17 Dec 2020 - It was a positive day of trade for the ASX. It continued to climb throughout the day, ending 1.2% higher. Shares in Netwealth (ASX:NWL) performed well today while Whitehaven Coal (ASX:WHL) did not fare well, despite upgrading its Winchester South Project metallurgical coal mine JORC Resource. All of the sectors closed in the black.

Read More
17Nov

Trading resumes after technical hitch: ASX tracking 0.4% higher at noon

17 Nov 2020 - After a rocky day yesterday, the ASX rose at the open and is now tracking 0.4% higher at noon. Unibail-Rodamco-Westfield (ASX:URW) shares have jumped over 16 per per cent. Two IPO’s are currently performing well, Native Mineral Resources Holdings Limited (ASX:NMR) and Universal Store Holdings Limited – (ASX:UNI) after a false start yesterday.

Read More
17Jul

Dow Jones surges on strong earnings kickoff

17 Jul 2023 - The Dow Jones Industrial Average climbed Friday as strong earnings results from some of the biggest banks and companies kicked off earnings season.

Read More
23Dec

Wall St rides sleigh for 2nd day, Pilbara Minerals rated as outperform: ASX to rise

23 Dec 2021 - Muted performance around the globe ahead of Christmas. US & UK GDP mixed. ASX ekes out gain for 2nd day as M&As dominate headlines, while buy-the-dip players rescued lithium miners. Macquarie rates Pilbara Minerals (ASX:PLS) as Outperform.

Read More
16Mar

Global central banks roll out emergency measures: Aus shares shed 9.7% today

16 Mar 2020 - The Australian share market took a dive at the open and lost ground over the day to close 9.7 per cent lower, as the COVID 19 virus continues to impact global markets. Widespread selling across the board today saw all of the sectors retreat. Industrials and Energy weighed heaviest on the market – both losing over 13 per cent. West African gold-focused exploration and development company, Cardinal Resources (ASX:CDV) has received a notification from Nord...

Read More
26Feb

Lynas (ASX:LYC) NPAT up over 900%: Aus market down 1.8% over week

26 Feb 2021 - Aussie shares dropped in early trade and tracked sideways for most of the afternoon to end 2.4 per cent lower. The Information Technology sector led the losses today, with none of the sectors managing to advance. Shares in Lynas Rare Earths (ASX:LYC) jumped almost 6 per cent today after the company released its financial results for the half year. Net profit was up more than 9 fold compared to the prior corresponding period and rose...

Read More