DJIA propelled past 28,000 points fueled by the trade deal optimism


The American stock exchanges closed with new records on Friday. The leading Dow-Jones index went beyond the limit of 28,000 points. Among other things, investors on Wall Street processed better-than-expected figures on US store sales. Furthermore, attention was mainly focused on trade negotiations between China and the United States.

The Dow finished 0.8 percent higher at 28,004.89 points. The broad S&P 500 also won 0.8 percent, to 3120.46 points, and technology Nasdaq index went up 0.7 percent to 8540.83 points.

The optimism about a trade deal seems to be returning somewhat. US trade minister Wilbur Ross spoke about the final phase in the negotiations, but warned that the new import tariffs on Chinese goods, which are scheduled for December 15, can still take effect. White House economic adviser Larry Kudlow also stated that the two superpowers are almost over.

Department store chain JC Penney managed to reduce its quarterly loss more strongly than average experts expected. This was rewarded at the fair with a price jump of more than 6 percent.

Supplier to the chip sector Applied Materials also got the hands of investors together with positive expectations for the current quarter. That could be a signal that the weakness in the chip market is coming to an end. The share rose by just under 9 percent. Producer of chips and graphic cards Nvidia also opened the books. Here, expectations were disappointing and the company lost nearly 3 percent on the stock market.

Furthermore, Qiagen was set around 9 percent higher. The Dutch-German biotechnologist will talk to potential buyers. Various parties have expressed an interest in a takeover of the company that is listed on the stock exchanges in Frankfurt and New York.

The euro was worth $ 1.1053, against $ 1.1044 at the close of the European stock markets earlier in the day. A barrel of American oil was 1.9 percent more expensive at $ 57.82. Brent oil rose 1.8 percent in price to $ 63.38 per barrel.

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Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

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