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Wall Street Rebounds Strongly on Friday to Post Weekly Gain

Wall Street Rebounds Strongly on Friday to Post Weekly Gain
U.S. stocks rallied on Friday, erasing a weekly loss as investors decided to 'buy the dip' whilst weighing up the strength of the economy, valuations and interest rates.
Feb 26, 2018 By Simon Herrmann Tags: Stocks for Breakfast

U.S. stocks rallied on Friday, erasing a weekly loss as investors decided to 'buy the dip' whilst weighing up the strength of the economy, valuations and interest rates.

The S&P 500 Index pushed past its average price for the past 50 days and erased losses for the week with its biggest gain in almost three weeks. The gauge extended gains in afternoon trading, reversing a four-day pattern had seen it swoon. West Texas Intermediate crude advanced 1.2 percent to $63.56 a barrel, capping a second weekly gain.Gold futures declined 0.1 percent to $1,331.30 an ounce.

The S&P 500 rose 1.6 percent at 4 p.m. in New York. It rose 0.6 percent on the week.
The Nasdaq Composite climbed for the first time in five days. It added 1.3 percent in the four days.
The U.S. Federal Reserve, led by Jerome Powell, indicated that the central bank sees the labor market at or beyond full employment, while some pockets of finance are showing signs of rising leverage and high valuation.

The Stoxx Europe 600 Index rose as gains in telecom shares offset declines in retailers. The MSCI Asia Pacific Index rose earlier, underpinned by gains from Sydney to Shanghai. Yields on 10-year German bunds dropped to the lowest since January. The common currency slipped.

Source: Bloomberg, Iress, Reuters, SMH, wise-owl

ASX Set to Open Higher

While Australian investors continue to analyse corporate earnings, a strong rise on Wall Street offers a positive lead for the ASX with SPI Futures up over 30 points this morning.

Last week was largely influenced by company results and the Australian market is set to report earnings per share growth of more than 6 per cent. Over 80% of companies have reported and we have seen more upgrades than downgrades.

The S&P/ASX 200 rose 0.8 per cent on Friday to 5,999. The benchmark index added 1.6 per cent over the five days. A2 Milk (ASM) was the standout performer, rising over 35%.

Wise-owl issued a couple of updates and a buy recommendation last week. Please contact us if you have any queries.

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Simon Herrmann Author: Simon Herrmann Feb 26, 2018

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

Stocks Turn Lower after Fed Minutes

U.S. stocks traded higher for most of the day but declined in the final hour of trading erasing all of the session's gains.

Author: Simon Herrmann Feb 22, 2018

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