Tags: central bank | stocks | market | China

Wall Street Ends at Records on Central Bank Action to Boost Growth

Friday, 21 Nov 2014 04:53 PM

Stocks closed higher on Friday, with Wall Street's major indexes advancing for the fifth straight week after China's central bank cut interest rates and its eurozone peer announced asset purchases in efforts to boost each region's economy.

The gains were broad on a day when both the Dow and S&P 500 ended at closing records. All ten primary S&P 500 industry sectors ended the day higher, while 63 percent of stocks traded on the New York Stock Exchange closed in positive territory. About 50 percent of Nasdaq-listed names were higher on the day.

"Stocks opened higher following the activity by central banks," Rob Williams, deputy editor of MoneyNews.com, said on "The Steve Malzberg Show" on Newsmax.TV. "Markets sold off gradually throughout the day, but still managed to hit records."

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The People's Bank of China said it was cutting one-year benchmark lending rates for the first time in more than two years.

The move came after Draghi said "excessively low" inflation had to be raised quickly by whatever means necessary, rekindling expectations the ECB will move to stimulate the eurozone economy. The ECB said it started buying asset-backed securities to encourage banks to lend and revive the economy.

"It isn't the size of the moves but the shock value of the direction that is really lifting markets today," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $67 billion in assets. "This is a one-two punch for global growth."

The Dow Jones industrial average rose 91.06 points, or 0.5 percent, to 17,810.06, the S&P 500 gained 10.75 points, or 0.52 percent, to 2,063.5 and the Nasdaq Composite added 11.10 points, or 0.24 percent, to 4,712.97.

Both the Dow and S&P ended at records. For the week, the Dow rose 1 percent, the S&P added 1.2 percent and the Nasdaq rose 0.5 percent. It was the fifth straight weekly advance for all three.

Gains in the Nasdaq were limited by declines in large-cap tech companies. Microsoft Corp. fell 1.5 percent to $47.97 while Netflix Inc. slid 2.1 percent to $360.28.

GameStop Corp. sank 13 percent to $37.86 a day after the video game retailer posted quarterly revenue and earnings well below expectations. The stock was the biggest decliner on the S&P 500.

The benchmark index's biggest gainers were Ross Stores and Autodesk Inc., both of which rallied after results late Thursday. Ross jumped 7.3 percent to $89.27 while Autodesk was up 6.1 percent to $61.95.

NYSE advancers outnumbered decliners 2,029 to 1,039, for a 1.95-to-1 ratio on the upside; on the Nasdaq, 1,461 issues rose and 1,286 fell, for a 1.14-to-1 ratio.

The S&P 500 posted 96 new 52-week highs and no new lows; the Nasdaq Composite recorded 111 new highs and 44 new lows.

About 6.5 billion shares traded on all U.S. platforms, according to BATS exchange data, above the month-to-date average of 6.35 billion.

© 2017 Thomson/Reuters. All rights reserved.

 
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U.S. stocks closed higher on Friday, with major indexes notching a fifth straight weekly advance after China's central bank cut its benchmark interest rate and its euro zone peer announced asset purchases in efforts to boost each region's economy.
central bank, stocks, market, China
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2014-53-21
Friday, 21 Nov 2014 04:53 PM
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