Don’t miss my upcoming appearances:
The Dallas Money Show October 13-14
and the New Orleans Investment Conference, Nov. 1-4
Dow jumps 300 points
U.S. stocks finished out the week on a strong note; in fact we broke a 3-week losing streak. This was the first time in 4 weeks that the major averages finished higher on the week. When I recorded my podcast earlier in the week, the week was off to a rough start. But we had a turnaround. In fact, today the Dow Jones was up 319 points on the day – about a 1.2% gain. The NASDAQ was up even more; 106 points, that’s 1.34%. The Russell 2000, even better, up 1.8%. The Dow Transports were the stars of the day. They were up 2.23% – 224 points. Look at stocks like Apple, rising almost 3% to a new all-time record high.
Rumors and News Driving the Market
There was a lot of news driving the market today. Initially, we got rumors of some type of Brexit deal that potentially was imminent. Of course, there have been all sorts of rumors that have never panned out regarding a Brexit deal. But this morning, there was a rumor that really was causing a lot of buying in the European markets and that spilled over into the U.S. futures, which helped the U.S. market. And of course there was a lot of brewing optimism over some kind of impending trade deal with China, although that news didn’t come out until very close to the close.
U.S. Consumer Sentiment Climbs to 3-Month High in October
But, earlier in the day, we got the Consumer Sentiment number for October, and the markets are already higher by the time we got this release, which comes out at 10am; the market opens at 9:30. The prior month was 93.2, and the consensus was for a slight drop in consumer sentiment to 92. After all, there are a lot of reasons for consumers to be less optimistic now than they were back then. But the consumer… surprise – ended up being more optimistic. The number came out at 96 and that sent the price of stocks much higher.