Close Update: Stocks Extend Fed-Fueled Rally, End January With Sizable Gains



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Wall Street’s major averages were mixed at the close with the blue chip weighed down by earnings-related losses in DowDuPont ( DWDP ), while the S&P 500 and Nasdaq continued to gain mileage from the Federal Reserve’s dovish bias and upbeat corporate results from Facebook ( FB ).

After a dismal December, the benchmark indices all closed January with significant gains as the S&P 500 was up 7.9%, the Dow Jones Industrial Average higher by 7.2% and the Nasdaq taking the lead with a 9.7% increase from December.

Set in motion by the Fed’s adoption of a dovish ideology, stocks rallied with the help corporate earnings from Facebook and General Electric ( GE ) coupled with progress towards US/China trade.

Global bourses were mostly higher with China’s Shanghai underpinned by a slight improvement in the country’s manufacturing PMI, while downbeat retail sales left Germany’s DAX underwater. Italy’s FTSE MIB closed 0.21% lower after GDP data confirmed the Italian economy has fallen into a recession.

US markets were heavier at the open but sprang to life after the release of a better-than-expected 17% increase in new home sales and market-friendly US/China trade headlines.

Thursday’s other data included a surge in initial jobless claims due to the government shutdown; a 0.7% increase in the Q4 employment cost index; and two-year low in the Chicago PMI.

US MARKETS

Dow Jones Industrial Average was down 15.19 points (-0.06%)

S&P 500 was up 23.46 points (+0.88%)

Nasdaq Composite Index was up 98.66 points (+1.37%)

GLOBAL SENTIMENT

FTSE 100 was up 0.39%

Nikkei 225 was up 1.06%

Hang Seng Index was up 1.08%

Shanghai China Composite Index was up 0.35%

UPSIDE MOVERS

(+) FBIO (+39.86%) Forms strategic partnership with Alexion ( ALXN ), Caelum Biosciences for CAEL-101

(+) AVP (+23.81%) Endorsed by portfolio manager Bill Miller

(+) GE (+11.65%) Q4 revenue tops estimate, misses on EPS

(+) FB (+10.82%) Tops Q4 estimates

DOWNSIDE MOVERS

(-) AVEO (-60.49%) Accepts FDA recommendation not to submit NDA for tivozanib with preliminary results from phase 3 Tivo-3 trial

(-) CODX (-39.29%) Selling 3.9 million shares to raise $5.5 million

(-) HRB (-7.56%) Downgraded at Goldman to sell from neutral, lowers PT to $22


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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