Dow and S&P 500 hovering near record highs, as weak factory and labor market news was offset by data indicating inflation pressure remains tame despite aggressive monetary policy.
Cisco Systems led gains in both the Dow and Nasdaq Composite with a 12 per cent surge after the network equipment maker posted a higher-than-expected quarterly profit and said current-quarter revenue could increase.
Cisco shares shot up by 12.3 per cent to $23.82 after hitting $24.24, the highest since November 2010.
The US economy showed fresh signs of slower growth in the second quarter, with factory activity slipping in the mid-Atlantic region, while groundbreaking slumped at home construction sites.
New claims for jobless benefits unexpectedly jumped last week.
However, soft underlying inflation – which could point to weak demand in the economy – also means the Federal Reserve has room to continue the aggressive monetary policy that has provided a main pillar for the US stock market’s advance.
The S&P 500 was up by 16 per cent so far this year and trading at historic highs.
“The data wasn’t great, but it has recently surprised a little bit to the upside.
“Inflation data was very good. It doesn’t put any pressure on the Fed. Investors are confident the Fed will continue to stimulate the economy.”
Subscribe for alerts& follow the BIGGEST Business Blog in Nigeria & fastest growing Entrepreneurial/Political blog in Africa daily
Follow me on Twitter- @udeozochibuzo
Email me- firstname.lastname@example.org
Become My friend on Facebook- udeozochibuzoConnect with me on LinkedIn-udeozochibuzo
Watch me on Youtube-udeozochibuzo
Check out my Blog daily- http://www.udeozochibuzo.wordpress.com
You can Follow UC-Blog via Email- Simple just enter your email address to follow UC-Blog and receive notifications of new posts by email instantly.
BE SOCIAL SHARE THIS POST WITH FAMILY & FRIENDS BY CLICKING ANY OF THE SOCIAL MEDIA ICON BELOW!!