Stock Market Overview – Stocks Rise to All-time Highs, Led by Energy, GDP Expands More than Expected
US stocks continued to rally rising to fresh all-time highs as volatility continued to easy. Stronger than expected GDP and Durable goods orders, as well as an unexpected decline in US jobless claims, buoyed stock prices. With interest rates remaining low for the foreseeable future and the likelihood of phase-1 of a trade agreement between US and China, riskier assets remain buoyed. The Nasdaq led the major averages higher, while small cap stock continued to play catch up. Most sectors were higher, led by a rebound in Energy shares, Industrials bucked the trend.
Growth Expands More than Anticipated
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Growth in the US expanded more than expected, rising 2.1% during the Q3. Despite the moderate growth, there are economists say that believe that growth slowed in the Q4. The Commerce Department reported that Q3 growth rate in the gross domestic product exceeded its initial estimate of a 1.9% rate. Despite this better than expected GDP has slowed from the robust growth seen in the Q1 of 3.1% year over year. Expectations are for Q4 growth to grow by only 1%.
Durable Goods Order Unexpectedly Rise
US Durable Goods orders rose 0.6% in October after dropping 1.4% in September, according to the Commerce Department. Expectations were for a 0,1% decline. Orders for military aircraft soared 18.1%. Excluding defense, durable goods orders blipped up 0.1%. The numbers reflected a strike at General Motors, settled in late October. Orders for cars and auto parts fell 1.9% in October and 2.9% in September. Durable goods order ex-aircraft as a proxy for business investment rose 1.2% last month after dropping in September.
US Jobless Claims Decline
US Jobless claims declined 15,000 to 213,000 for the week ended November 23, according to the Labor Department. Data for the prior week was revised to show 1,000 more claims received than previously reported. Expectations had been for claims to decline to 221,000 in the latest week. The four-week moving average of initial claims, slipped 1,500 to 219,750 last week.