Dow, S&P 500 power to new records on China stimulus

GMT 22:30 2014 Friday ,21 November

Arab Today, arab today Dow, S&P 500 power to new records on China stimulus

A trader works on the floor of the New York Stock Exchange (NYSE)
New York - AFP

US stocks barreled to fresh records Friday, easily eclipsing prior peaks following China's surprise interest-rate cut.
The Dow Jones Industrial Average jumped 91.06 points (0.51 percent) to 17,810.06, posting its second straight record close.
The broad-based S&P 500 gained 10.75 (0.52 percent) to 2,063.50, while the tech-rich Nasdaq Composite Index advanced 11.10 (0.24 percent) to 4,712.97.
The People's Bank of China unexpectedly cut benchmark interest rates for the first time in more than two years to boost sagging economic growth.
Jack Ablin, chief investment officer at BMO Private Bank, said China's move was "a huge benefit" for global economy.
Analysts also were encouraged by comments from European Central Bank President Mario Draghi that the bank is ready to immediately expand stimulus efforts to return the eurozone to its inflation objective.
The twin China and ECB moves were "big news," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
"It's just the prescription the doctor ordered," Skrainka said. "There is a serious risk of deflation in Europe and China was struggling to maintain its growth goal as well."
Equity markets in Britain (+1.1 percent), France (+2.7 percent) and Germany (+2.6 percent) all rose.
Dow member Caterpillar, a big supplier to Chinese industry, gained 4.3 percent.
Miners Freeport-McMoRan (+3.6 percent) and Southern Copper (+4.6 percent) jumped on rising copper prices in anticipation of stronger Chinese demand, while oil stocks like Dow member ExxonMobil (+1.0 percent) and Halliburton (+2.9 percent) also gained.
Dow member Microsoft fell 1.5 percent after Jefferies rated it "underperform." Jefferies said the tech giant's position in mobile technology is weak and that chief executive Satya Nadella is unlikely to make significant changes.
Sotheby's bolted 6.9 percent higher after it announced that chief executive William Ruprecht stepped down. The move follows pressure by activist shareholder Daniel Loeb, who pushed his way onto the Sotheby's board earlier this year.
Hertz Global Holdings gained 4.5 percent as it named former United Airlines chief operating officer John Tague as its new chief executive. The appointment comes after another prominent activist, Carl Icahn, won three Hertz board seats in September.
Bond prices rose. The yield on the 10-year US Treasury fell to 2.32 percent from 2.34 percent Thursday, while the 30-year dipped to 3.02 percent from 3.05 percent. Bond yields and prices move inversely.

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