Money: Dow jumps 200 points to close above 27,000 for the first time - PressFrom - Canada

MoneyDow jumps 200 points to close above 27,000 for the first time

23:36  11 july  2019
23:36  11 july  2019 Source:

Consumer confidence jumps after Trudeau green lights pipeline

Consumer confidence jumps after Trudeau green lights pipeline Just like that, Canadians are feeling a lot less gloomy. Consumer sentiment rebounded sharply last month, with households reporting more optimism about their personal finances and the nation’s economic outlook, according to telephone polling. The Bloomberg Nanos Canadian Confidence Index -- a composite indicator derived from weekly surveys of Canadian households -- hit 58.3 last week, up from 55.5 at the end of May. That’s the second biggest one-month increase since 2015 and brings the gauge to the highest level since February 2018. It’s a dramatic turnaround in confidence.

The Dow Jones Industrial Average rallied to a record high Thursday, led by UnitedHealth shares, after testimony by Federal Reserve Chair Jerome Powell this week that signaled easier monetary policy could be implemented later this month.

The 30-stock average broke above 27,000 for the first time, closing 227 points higher. The index first closed above 26,000 in January 2018, so it’s been a little more than a year-and-half trek between 1,000-point moves, with the gains driven largely by expectations that the Fed will cut rates, insulating the market from a slowing economy and a trade battle with China.

Tesla sets a record for sales, and its stock jumps 7%

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Microsoft has been the best-performing Dow stock since the index’s first close above 26,000, surging by about 50%. Visa, Cisco Systems and Nike also are up sharply since then.

“This week solidified the fact that the market doesn’t need, it doesn’t want, it’s demanding a rate cut from Powell,” said Jeff Kilburg, the CEO of KKM Financial. “I do have a little bit of caution going into the earnings season because we have some forward-guidance uncertainty with the trade tensions, but the wind in the sails continues to be that dovish stance from Powell.”

The S&P 500 also posted a record close, rising 0.2%. The broad index also traded above 3,000 on an intraday basis. The S&P 500 first broke above 3,000 on Wednesday. The Nasdaq Composite slipped 0.1%.

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UnitedHealth shares surged more than 5% after the White House dropped a proposal to eliminate drug rebates. CVS Health and Cigna also jumped on the news, gaining 4.7% and 9.2%, respectively.

Delta Air Lines rose 1.1% on better-than-expected earnings.

In testimony to the House Financial Services Committee on Wednesday, Powell said business investments across the U.S. have slowed notably recently as uncertainties over the economic outlook linger. As a result, expectations of an upcoming rate cut grew.

“Crosscurrents have reemerged,” Powell said. “Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”

Toronto Raptors sign free-agent forward Rondae Hollis-Jefferson

Toronto Raptors sign free-agent forward Rondae Hollis-Jefferson TORONTO — Forward Rondae Hollis-Jefferson signed with the Toronto Raptors on Thursday. Financial terms of the deal were not disclosed, as per Raptors team policy. Hollis-Jefferson averaged 8.9 points, 5.3 rebounds and 20.9 minutes in 59 games for the Brooklyn Nets last season. He reached double-digit scoring in 24 games and posted four double-doubles. The six-foot-seven, 217 pound Hollis-Jefferson had a season-high 21 points Nov. 4 against

Powell reiterated that testimony on Thursday. Market expectations for a rate cut later this month are at 100%, according to the CME Group’s FedWatch tool.

Thursday’s milestone was only the latest in the longest bull market in history. The bull run started in March of 2009 after the financial crisis. Back then, the Dow was trading around 6,600 points while the S&P 500 hovered below 1,000 points.

“Sure, 27,000 is just a number and in the whole scope of things isn’t meaningful,” said Ryan Detrick, a senior market strategist at LPL Financial. “What it is though, is a reminder for all investors that this bull market has ignored all the scary headlines for years and the dual benefit of fiscal and monetary policy could mean it has a lot longer to go than most expect.”

In economic news, the U.S. consumer price index — a widely followed measure of inflation — rose more than expected last month, with the core CPI posting its biggest gain in 1½ years. But that failed to dent investors’ expectations that the Fed will deliver a rate cut.

CNBC’s Silvia Amaro contributed to this report.

Report: Rangers land Panarin on 7-year, $81.5M contract.
Breadman is headed to Broadway. The New York Rangers have signed free-agent superstar Artemi Panarin to a seven-year, $81.5-million contract, according to Sportsnet's Elliotte Friedman. With a reported average annual value of $11.642 million, Panarin is now the second-highest-paid player in the league after Connor McDavid. Panarin, one of the most coveted free agents on the market, joins the Rangers after two seasons with the Columbus Blue Jackets. He notched 28 goals and registered a career-high 87 points in 79 games this past campaign and added five goals and 11 points in 10 playoff contests.

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