Nasdaq Recorded Historical High
IFC Markets | Jul 17, 2015 09:48AM ET
American stocks advanced further yesterday. Nasdaq recorded a new historical high, as Google (NASDAQ:GOOGL) added 13.5% after trading day closure. Ebay (NASDAQ:EBAY) increased 3.4%, while Netflix (NASDAQ:NFLX) rallied 18%. Citigroup (NYSE:C) reported the maximum 8-year return, with its stocks rising 3.8%. From now on, most investors expect the overall corporate profit to drop 2.9%, as compared to previously estimated 3.1%. US dollar index edged higher when FRS reiterated the decision to raise the rate this year with due regard to economic performance. Today, it has slightly been pulling back ahead of June Consumer Price Index release at 14:30 CET. The tentative outlook is positive; however, it does not encourage a sooner rate hike. Building Permissions in June will be published at the same hour. University of Michigan will announce Consumer Confidence Index at 16:30 CET. The tentative outlook is negative. Today, investors expect the General Electric (NYSE:GE) quarter report, which may considerably affect markets. Despite the sharp growth of quotes, the American stocks turnover was 15% below the monthly average, making 5.6bln shares.
Warren Buffett Indicator reached the overbought zone, which may indicate that the American stock market is overpriced. The indicator is calculated as a relation of share capital to GDP (excluding inflation). We would like to remind that since the beginning of the year, S&P 500 has gained 3.2%, Dow Jones – 1.3%, and Nasdaq scored 8.5%. Federal Reserve System estimates that GDP will grow 1.8-2.0% in 2015. Office of Management and Budget (an institution affiliated to the US government) forecasts 2% GDP expansion this year and 2.9% growth in 2016. The outrunning advance of American stock indices will drive up the Warren Buffet Indicator.
European stocks increased yesterday together with American ones. According to economic data, Ericsson (ST:ERICAs) shares gained 5.6%, as Electrolux (OTC:ELUXY) climbed 2.8%. The market sentiment was improved by the Greek parliament ratifying the austerity measures agreement. It sharply decreases default risks and makes additional financial aid more likely. From now on, Greece will have both to cut pensions and to transfer property worth €50bln to the private sector. Most market participants expect corporate profit to add 5%. We believe it confirms that the European economy is more sustainable, as compared to the US. Since Greek default risks faded, the euro may stabilize. No important macroeconomic data is released today in the eurozone. Stoxx 600 may hit the weekly record since January.
Get The News You Want
Nikkei advanced today following global indices. It completed the 5-day winning streak, showing the best weekly performance since October – plus 5%. It was underpinned by Chinese stock market recovery as well. According to Japan Exchange Group, last week the amount of Japanese stocks net buying was 527bln shares, the highest since January 2014.
Oil prices dropped, as the first supertanker Starla, carrying 2mln barrels, sailed to Asia from Iran. After the recent sanctions lifting, Iran is going to boost production by 500 thousand barrels daily in 2 months. It may then expand 1mln barrels per day within 6-7 months. It is worth mentioning that since the beginning of the year, the Iranian rial plunged almost 9%. In theory, it may strengthen when the country gets additional oil money.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.