The Standard & Poor’s 500 index continuously showing positive trend as it rose to record 1527.46 high in a succession.
Market respond positively as increases long-term interest rates provide new competition for investor dollars. The 30-year Treasury bond yield rose slightly above 5 percent for the first time in nine months. The 10-year Treasury note yield rose to its highest point since January. With the higher long-turn interest rate, housing slump is expecting stop.
Despite gating good response from the market in succession, former Federal Reserve chairman Alan Greenspan expressed concern for “dramatic contraction” in Chinese stocks after the recent boom, adding the run-up was “clearly unsustainable.”
The comments come almost three months after a sharp drop in Chinese stocks on concerns about speculative investments triggered a global equity rout.
Head of block origination at UBS, Bobby Harrington, said
There were some comments about the bubble in China and that reversed our market. The last big sell-off was China- driven, so Greenspan’s comments got people to be a little bit more aggressive on the sell side
In the trading S&P 500, climb to a new high, ends up losing 1.84 points to 1522.28 despite being up 8.3 points earlier in the session. The index is up 7.3% this year. Despite a good result from S&P 500, The Dow Jones industrial average results dip 0.11 percent at 13,525.65, and the Nasdaq composite index stumbled 10.97 points to 2577.05.
Big Gainers:
Cypress Bioscience, a biotech company, shares mounts record 94% or $7.92, to $16.37. Men’s Wearhouse, a men’s clothing retailer, jumped $4.44 to $49.98., as the company posted better-than-expected earnings of $40.9 million, an increase of 42% from the year-ago period. Whereas Payless ShoeSource (PSS) increased $3.24 to $35.14 after the shoe retailer disclose its decision to buy rival Stride Rite for about $800 million.
Big looser:
CSS Industries profit slashed $5.6 million. Whereas Spartan Stores income fell $26.04 per share. The dollar value declined, whereas gold shines in the market. The Russell 2000 index of smaller companies fell 3.38, or 0.4%, to 836.54.
Chinese stocks increased as report said that the government may increase quotas for foreign investment in local bourses. The Shanghai Composite Index gained 1.5% to 4,173.71. The Shenzhen Composite Index raised 2.1% to 1,223.98. Japan’s Nikkei stock average mounts 0.1%. Britain’s FTSE 100 recorded 0.2%rise, whereas Germany’s DAX index added another 1.0%, and France’s CAC-40 advanced 0.5%.
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Via: chicagotribune
