Records on Wall Street – Private Businesses

Records on Wall Street – Private Businesses

Hopes of easing by the ECB gave support to risk sentiment globally, while markets saw signs of continued high acquisition willingness of American companies.

The Dow Jones closed up 0.5 percent at the index level 17,100, while the technology-heavy Nasdaq composite rose 0.4 percent to 4,557. S & amp; P 500 rose, while 0.5 per cent to 1,998, and the index succeeded thus not close above the psychologically important 2,000 level temporarily crossed out earlier in the trading session.

The turnover was relatively low 460 million shares on the New York -börsen and 1.37 billion on the Nasdaq.

“This level, 2.000, is quite important from a psychological and financial standpoint. Perhaps we have reached a bit overbought levels, and it looks as if the indexes will stop and take a breather out here, “said Joe Bell, an equity analyst at Schaeffer Investment Research, told Bloomberg News after the US-indices fell back slightly from the day’s highs.

The stock markets took the opening back on the European indices, which climbed earlier in the day with the support of the ECB President Mario Draghi at the central bank conference in Jackson Hole fueled speculation that the central bank is approaching the implementation of a program of quantitative easing in the euro zone. Mario Draghi stressed that the central bank stands ready to boost the European economy, and that it will use all the means at hand to “ensure price stability in the medium term.”

“Draghi was dovish and while Yellen and the rest of Fed members are preparing for an interest rate hike next year leans policy (in Europe) to a certain extent still to cheap money. And if you have a flow of cheap money from Europe, it will also help the stock markets here in the United States, “said Peter Cardillo, chief economist at Rockwell Global Capital to Market Watch.

Among individual stocks ended Burger King in focus after the company announced that it is in discussions to buy the Canadian coffee shop chain Tim Hortons. A deal would open for Burger King to move its tax residence to Canada, which in turn would mean significantly lower corporate tax rate for the hamburger chain. Burger King shares rose nearly 20 percent, while Tim Horton climbed 19 percent.

Another company that turned heads was Goldman Sachs. Late on Friday evening, it became clear that the investment bank will pay 3 billion dollars to reconcile allegations regarding the company’s sale of bonds to Fannie Mae and Freddie Mac before the financial crisis. Shares moved up 1.4 percent.

On the bond market, the interest rate on an American ten-year Treasury bond down 2 basis points to 2.39 percent.