Daily Management Review

Three major US indices set records for the first time since 1999


Major US stock indices S&P 500, Dow Jones and NASDAQ synchronously reached historic highs during trading on August 11. Last time this happened in 1999.

Meutia Chaerani / Indradi Soemardjan http://www.indrani.net
Meutia Chaerani / Indradi Soemardjan http://www.indrani.net
Value of S&P 500 rose to 2188.45 points during the trading session. This is the highest opening in the index’s history, which began publication in March 1957 with a mark of 44.06 points. The session closed at the level of 2185.79 points (+ 0.47% to the previous closing), which is also a record. 

Calculation of S&P 500, which is often referred to as "the barometer of the US economy", takes into account share price of the 500 largest and most important public US companies traded on the New York Stock Exchange (NYSE), NASDAQ. The enterprises represent various sectors of the economy.

DJIA index (calculated based on share price of the 30 largest US companies traded on the NYSE and NASDAQ) jumped for the day by 0.64%, so trading closed at a record high 18,613.52 points. High-tech index NASDAQ rose for the day by 0.46% (up to 5228.4 points), also setting a new record.

The growth of stock indices was triggered by rise in international oil prices. August 11, Brent crude has risen by about 5% on the ICE exchange. For the first time in three weeks, the trading was closed above $46 per barrel.

Soared oil prices led to the fact that S&P energy rose at the end of yesterday's trading at 1.3%, showing the best dynamics among the ten major sectoral indices. At the same time, shares of Chevron Oil Company, gained 1.26% during the day, became momentum for growth.

Low unemployment in the US and better-than-expected results of major retailers Macy's and Kohl's also cheered investors up. Macy's shares yesterday rose 17.09% after the company reported that comparable sales at its stores declined less than forecast. Kohl's papers jumped by 16.17% on the background of the positive statements.

Major US stock indexes were also pushed up by growth of share price of companies such as Nike (+ 2,9%), Merck pharmaceutical company (+ 1,58%), as well as Post-It notebook manufacturer and Scotch 3M adhesive tape producer (+ 1.22%).

Earlier, the United Kingdom referendum presented the year's biggest surprise for global markets. 17.4 million Britons who voted for the country's exit from the European Union, provoked a collapse in the world’s trading.

"We are moving to a completely uncharted territory, where the only certainty is the continuing uncertainty", - said Jean-Michel Six, a Credit Analyst at S&P Global Ratings Inc.

The British "black swan" enhanced economic and political risks in the EU, caused investors to talk about the new wave of volatility expected by the market, and economists - to lower forecasts for global growth.

As a result, the markets of developed countries in the first hours after the historic referendum lost 8-9 % on average. US stock markets opened in the red zone after the European. S&P 500 index fell more than 3.5%, and the high-tech NASDAQ – down by almost 4%.

source: bloomberg.com

Science & Technology

Five new technologies that will change the world

Over 500 Genes Impacting Intelligence Identified By Scientists

MIT Scientists Say It Could Be Just 13 Years For Commercialization Of Nuclear Fusion

Apple patents MacBook with a keyboard screen

Vero: An Instagram killer?

Wacky Weather Causes ‘Split In The Polar Vortex’

Smart And Adaptive Artificial Eye Developed By Researchers At Harvard

NASA’s Mars Mission To Make Use Of Cold War-Era Atomic Rockets

Israel Completes Mars Habitat Simulation Experiment

Just $24 Earned By Hackers From The Huge Cryptojacking Campaign Conducted Last Week

World Politics

World & Politics

Ten world's largest importers of weapons

Christine Lagarde: there’s no winner in trade wars

10 best countries for freelancers

Alarming Concerns Or Driving Force Towards Green Energy? – Bitcoin Growth Comes At Environmental Cost

Catalan authorities refuse to greet the King of Spain

Ten Top Politicians To Be Investigated By Greek Parliament On Charges Of Taking Bribes From Novartis

The cloudy future of Saudi Arabia

Australia To Welcome Britain On The Latter’s Interest In Joining TPP