Thursday 28 November 2013

US markets gain; S&P 500, Dow achieves record close

The US markets closed higher on Wednesday, with the S&P 500 and Dow Jones Industrial Average achieving record closing, after better-than-expected reports emerged on consumer sentiment, employment and Chicago-area business conditions. A gauge of consumer sentiment rose this month as expectations turned rosier. According to the University of Michigan and Thomson Reuters, the consumer-sentiment gauge rose to 75.1 in November from 73.2 in October. Despite the gain, November’s reading remains below 77.5 hit in September. The gauge of consumers’ expectations rose to 66.8 in November from 62.5 in October. A barometer of their views on current conditions declined to 88 from 89.9. Separately, the Labor Department stated that the number of people who applied for US unemployment benefits fell for the sixth time in seven weeks, returning to end-of-summer levels and pointing to some improvement in the labor market. Initial jobless claims dropped by 10,000 to 316,000 in the week ended November 23.

Besides, a gauge of Chicago-area business activity pulled back this month after jumping in October to the strongest level in more than two years, but still beat the consensus estimate. The gauge reached 63 in November, down from 65.9 in October, according to the MNI Chicago Report. Results over 50 indicate expansion from the prior month. However, business investment as reflected by orders for durable goods was soft again in October, pointing to slower US growth in the final months of 2013. Orders for big-ticket US goods fell 2% last month, largely because of fewer contracts for jumbo jets, the Commerce Department reported.

The Dow Jones Industrial Average gained 24.53 points or 0.15 percent to 16,097.30, the S&P 500 was up 4.48 points or 0.25 percent to 1,807.23 and Nasdaq added 27.00 points or 0.67 percent to 4,044.75.

Indian ADRs closed mostly in green on Wednesday; Tata Motors was up 0.92%, Dr. Reddy’s Lab was up 0.50%, HDFC Bank was up 0.18% and ICICI Bank was up 0.11%. On the other hand Infosys was down 0.40%.

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