The US markets closed higher on Thursday, with the
S&P 500 and Dow Jones Industrial Average climbing to record levels
for the second straight day, after European Central Bank president Mario
Draghi hinted at monetary stimulus of as much as 1 trillion euro.
Better-than-expected jobless claims data as well as productivity report
also drove the markets higher. The number of Americans applying for new
jobless benefits lingered below 300,000 for the eighth straight week
amid the lowest level of layoffs in years. Initial jobless claims fell
by 10,000 to a seasonally adjusted 278,000 in the week ended November 1.
That’s the second smallest number since the Great Recession and one of
the lowest in 35 years. The average of new claims over the past month,
meanwhile, dropped by 2,250 to 279,000 and touched a 14-year low. The
four-week average reduces seasonal volatility in the weekly report and
is seen as a more accurate gauge of labor-market trends.
Besides,
US productivity in the third quarter grew at a 2% annual pace,
preliminary data show, marking the fourth sizable increase in the past
five quarters. Output of goods and services climbed a seasonally
adjusted 4.4% and hours worked rose at a 2.3% annual pace. Productivity
has risen at least 2% or more in four of the last five quarters,
excluding a 4.5% plunge in the first quarter tied to harsh winter
weather. Hourly compensation increased at a 2.3% rate in the third
quarter while unit-labor costs grew a slower 0.3%.
Meanwhile,
Federal Reserve Bank of Cleveland President Loretta Mester stated that
changes in the central bank’s official policy statement last week help
drive home the point that any change in the interest-rate outlook will
be driven by the economy’s performance. Mester added that the
monetary-policy setting Federal Open Market Committee statement were an
important step that helped educate that when the Fed decides to lift
rates off their current near-zero level, the action won’t be based on
any sort of calendar-based commitment. And if progress is disappointing,
then increases are likely to be late.
Dow Jones
Industrial Average added 69.94 points or 0.40 percent to 17,554.47,
Nasdaq was up by 17.75 points or 0.38 percent to 4,638.47 while, S&P
500 ended higher by 7.64 points or 0.38 percent to 2,031.21.
The
Indian ADRs closed mostly in green on Thursday; Tata Motors was up by
0.76%, Infosys was up 0.09% and ICICI Bank was up 0.08%. On the other
hand, Dr. Reddy’s Lab was down 0.30% and HDFC Bank was down by 0.04%.
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