U.S. Stocks Follow Global Markets Higher
September 21 2018 - 10:25AM
Dow Jones News
By Georgi Kantchev
--U.S. stocks open higher, on track for weekly gains
--Shares in Europe, Asia rise
--Investors look to Fed meeting next week
U.S. stocks extended their gains Friday, rising in tandem with
markets from China to Germany, as they capped a week where
investors looked past international trade tensions and bet on a
strengthening American economy keeping the rally intact.
The Dow Jones Industrial Average rose 75 points, or 0.3%, to
26733, while the S&P 500 added 0.2%. The Nasdaq Composite
gained 0.2%.
All three indexes are on track to notch weekly gains after both
the S&P 500 and Dow industrials set records Thursday.
Elsewhere, the Stoxx Europe 600 was recently up 0.3% following a
rally in most Asian markets. Chinese stocks registered their
largest one-week percentage gain since 2016.
The gains come as investors this week mostly shrugged off the
imposition of new tariffs in the continuing trade spat between the
U.S. and China. Market participants instead focused on the strong
fundamental outlook, including solid corporate earnings and a
robust U.S. economy, which is growing at its fastest rate since
2014.
"Risk is having a great time at the moment," said Jim Reid, an
analyst at Deutsche Bank, in a note to clients.
Underscoring the robust economic outlook, Labor Department data
on Thursday showed that initial jobless claims, a proxy for layoffs
across the U.S., fell to the lowest level since 1969.
"The broader picture is clear: The U.S. economy is doing very
well," said Eric Stein, co-director of global income at
Boston-based Eaton Vance. "At some point you start to wonder if
this is as good as it gets. But we are not there yet."
Investors were also looking to next week's Federal Reserve
meeting. Most watchers are expecting the U.S. central bank to raise
interest rates.
"With the economy doing well and inflation not picking up much,
it has been easy for the Fed this year," said Mr. Stein, who is
expecting a rate rise next week and one more in December. "A year
from now is where it gets more interesting."
The 10-year U.S. Treasury yield edged slightly higher to 3.078%,
compared with 3.076% on Thursday. Yields move inversely to
prices.
The WSJ Dollar Index, which tracks the dollar against a basket
of 16 currencies, was up 0.2%.
In Asia, Chinese equities led the way, with the Shanghai
Composite closing up 2.5% to extend its weekly gain to 4.3%, its
best-five day stretch since 2016. Japan's Nikkei Stock Average rose
0.8% while Hong Kong's Hang Seng finished up 1.7%.
--Michael Wursthorn contributed to this article.
Write to Georgi Kantchev at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
September 21, 2018 10:10 ET (14:10 GMT)
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