Stock market news today, August 27, 2014: U.S. stock markets struck multiple intraday records on Tuesday, as strong consumer data suggested further momentum for the economy. The S&P 500 hit another record, fresh off its first intraday rise over the 2,000 level yesterday.
Stock Market Today
Stock market today, August 26, 2014: U.S. futures were flat this morning, a day after the S&P 500 Index cracked the 2,000 level for the first time ever and set a new all-time closing high just shy of that milestone.
Yesterday's rise was fueled by confidence in the financial and biotech sectors, which outweighed concerns about new housing sales falling to a four-month low. This morning, the U.S. Commerce Department reported that U.S. durable goods orders spiked by a record 22.6% in July.
Stock Market Close, Aug. 25, 2014: U.S. stocks were on the rise again Monday, with the S&P 500 Index cracking the 2,000 level for the first time ever and setting a new all-time closing high just shy of that milestone. The rise was fueled by investor confidence in the financial and biotech sectors, which outweighed concerns about new housing sales falling to a four-month low.
Update: Burger King (NYSE: BKW) stock finished down 4.32% Tuesday after the company's morning announcement that it will merge with Ontario-based coffee-and-donut chain Tim Hortons Inc. (USA) (NYSE: THI). THI stock closed up 8.47%.
In contrast, when news of merger talks originated on Monday, and shares in both BKW and THI enjoyed significant gains and ended that trading session up 19.51% and 18.91% respectively.
Stock market news today, Aug. 25, 2014: This morning, Dow Jones futures were up modestly on increased merger activity and rising confidence in monetary policy from the European Central Bank. In Jackson Hole, Wyo., ECB President Mario Draghi hinted at further stimulus to keep the gears moving in some of the continent's struggling nations.
Today's stock market news, August 22, 2014: With members of the U.S. Federal Reserve and notable economists meeting in Jackson Hole, Wyo., investors await new insight today (Friday) into when the central bank might raise interest rates and plans to sustain growth in the U.S. economy. For the first time, protesters have descended on the small ski town, questioning the Fed's policies and the "so-called" strength of the U.S. economic recovery. Fed Chair Janet Yellen will speak this morning.
It's commonly held wisdom that stock markets go to heck in a hand basket when interest rates rise. So, the thinking goes, you'd be better off selling ahead of time before that happens.
No doubt it's tempting to head for the hills with rates at historical lows, but it pays to do your research before you hit the "sell" button.
The three companies I'm going to show you today, for example, can actually benefit from rising rates.
First, let's take an "Econ 101" look at the impact interest rates can have on stocks, especially when rates start rising...
Dow Jones Today, Aug. 21, 2014: U.S. stocks rose on positive data Thursday to kick off the third quarter. American home resales hit a 10-month high last month, while jobless claims slipped again last week by another 14,000 to 298,000. The S&P 500 Index struck its 28th record high this year, ticking closer to the 2,000 level.
Stock market news today, August 21, 2014: Dow Jones futures were up 40 points (0.24%) this morning (Thursday). S&P futures gained 3.75 points (0.19%) and Nasdaq futures were also up 5.25 points (0.13%).
Yesterday saw the release of minutes from the most recent Federal Open Market Committee meeting in July. The minutes revealed that the U.S. Federal Reserve was impressed by job market's resilience, but still decided to wait on its decision of when it will raise interest rates.
The three major indexes all dropped in unison shortly after the release of the minutes from the U.S. Federal Reserve's July Federal Open Market Committee (FOMC) meeting, reflecting Fed sentiment that accommodative monetary policy could end sooner than expected if improvements continue in the labor market.
While the Fed made no remarks on an explicit timetable for interest rate hikes, which is what the markets are observing attentively, the minutes did indicate that the situation in the labor market was looking healthier and improving quicker than expected.
Stock market news, Aug. 20, 2014: U.S. stocks roared again Tuesday, buoyed by strong earnings reports and a slew of positive economic data.
The positive data and strong earnings reports overshadowed any concerns about ongoing geopolitical tensions in Ukraine, Israel/Gaza, and Iraq. Yesterday, the Kremlin announced that Russian President Vladimir Putin will meet with Ukrainian President Petro Poroshenko next week to discuss ways to resolve the problems plaguing Eastern Europe.
Stock Market Close, Aug. 19, 2014: U.S. stocks roared again Tuesday, buoyed by strong earnings reports and a slew of positive economic data. The surge was led today by The Home Depot Inc. (NYSE: HD), which saw shares rise nearly 6% after the company beat Wall Street estimates for its second quarter.
Today's stock market, August 19, 2014: U.S. stocks soared Monday on positive housing data and growing merger and acquisition activity. The Dow gained 175 points, while the S&P 500 Index is again taking aim at the historic 2,000 mark. The Nasdaq is back at a 14-year high.
Dow Jones today, Aug. 18, 2014: U.S. stocks soared Monday on positive housing data and growing merger and acquisition activity. The S&P 500 Index is again taking aim at the historic 2,000 mark, while the Nasdaq is back at a 14-year high.
Stock market news, Aug. 18, 2014: This week, leaders of the U.S. Federal Reserve will be meeting in Jackson Hole, Wyo., for the central bank's annual economic symposium. The meeting is expected to provide significant focus on the labor market and some focus on monetary policy for the road ahead. Meanwhile, this week is an important earnings period for home and consumer retail companies.