Stock market is a matter of deep interest; most of the people invest here to get surplus income. It is like trial and error; you may succeed or fail. However, still people love to do trading and invest in stocks.
Daily stock market keeps on changing and hence investments can sometimes lead to profits or sometimes to loss. Let’s see what Stock market has in store for today i.e. 27th September 2016.
Stock Market News of the Day:
U.S. Stocks Rise, Despite of fall in Oil Prices:
Tuesday, September 27, 2016: U.S. stocks upsurge today due to gain in technology and consumer shares where as oil prices declined. Dow Jones Industrial Average rose from 46 points or 0.3% to 1814 whereas S&P increased to 0.2% from 500 and Nasdaq saw hike of 0.4%.
Shares of travel companies got roused leading to growth in consumer discretionary sector of S& P500. Biggest gainers include Royal Caribbean Cruises, Expedia, Trip Advisor and Carnival.
In S& P 500; Tech Shares increased to 0.6%. Talking about shares in oil and gas companies; these faced tremendous decline as Crude prices in U.S. reduced by 2.9% to $44.60 per barrel which has given back some Monday gains.
Oil Prices, these days; seems to be fluctuating as major producers show up in some conference at Algiers where investors are in a complete hope for progress based on an agreement to limit the output.
As per the report by Wall Street Journal; on Tuesday, Organization of Petroleum Exporting countries decided to set on a proposal which would reduce almost 1 million barrels per day out of the cartel’s production over a year.
According to Saudi Arabia’s minister; it can take several months for oil producing cartels to be ready for general agreement. “People spend time to judge and identify the outcome but even those attending the meeting are unable to come to a conclusion regarding the outcome. Nothing is known to people sitting there”. – says Director at Brandes Investment Partners.
Stoxx Europe 600 increased as the market opened and then fell quickly into red with a decline of 0.2%, today is the worst day for Stoxx Europe.
Shares of Deutsche Bank fell down by 0.9%. Due to severe concerns related to German lender’s financial health; German shares dropped sharply on Monday leading to a huge fall in European Banking Sector.
Standard Chartered Bank shares slashed by 2.9% as Justice Department investigates the lender due to the allegations that bank has taken bribes to sign contracts for an Indonesian based firm, run by London based bank.
Italian banks unsound due to announcement of national referendum date on some constitutional changes by Italian Government. According to a Strategist at brokerage Peel Hunt; “An initial boost becomes completely out from the debate as biggest lenders in the continent are in trouble”.
After the presidential debate, it was found that dollar got reduced by 1.5% against Mexican Peso; highly sensitive to U.S. election. Donald Trump reveals plans to create a wall between two countries and again negotiate the trade agreements.
Mexican peso is considered to be the perfect expression of the risk. Even though stocks are on rise today; Peso declined by12% against dollar. Spectators have collected a complete gross record report for short peso position in the future market, as per the current strategists at Brown Brothers Harriman.
After the debate, haven assets were retreated but turned around losses due to decline in European stocks. Yield on 10 year U.S. Treasury note reduced to 1.565% which was 1.589% on Monday whereas German 10 year bond fell to -0.143%.
According to various market participants; Hillary Clinton victory seems to offer maximum support in the short term as compared to risky assets such as stocks because her policies have complete clarity and there are negligible uncertainties related to trade negotiations.
Investors in the market believe that Clinton is believed to be very safe and will have good continuity as revealed by James Athey, investment manager at reputed Asset Management firm.
Hillary Clinton is expected to venture in another period of dovish monetary policy but not too low – growth but still analysts believe that it was unclear whether debate would fundamentally change the course of election or control undecided voters.
In longer term, some doubted how much difference it would make for stocks as the U.S. Economy highly depends on the working of Federal Reserve rather on the president.
Prices of Gold reduced after debate as there are fewer chances of Trump Presidency to be continued. Gold for December Delivery reduced to 0.9% at $1,331.50 a troy ounce on the Comex division of New York Mercantile Exchange.
Safe Stocks to Buy Today:
a) Dan Caplinger: Everyone investing in stock market requires protection against the threat of certain unexpected expenses such as healthcare. Aflac ( AFL) is bound to meet the needs of its customers on two continents.
It is one of the well known companies in U.S. that offers supplemental insurance products along with coverage that completely covers all the benefits related to certain diseases and medical conditions and unpredictable accidents.
This company has wide exposure over Japanese market where it deals with wide range of products. Company offers generous dividends to its share holders for straight 33 years with quarterly payout each and every year. It is the safest stock in the market today.
b) Tim Green: Whenever you wish to invest in stock; there are two things to be considered; company with rock solid business model having competitive advantages that reduce the risk and another one is reasonable share price.
Walt Disney Company, founded a century ago, owns ABC and ESPN and also operates successful movie business having franchises such as Marvel and Star Wars. It also runs various amusement parks and resorts around the world thus generating billions of dollars of revenue from consumer products.
Every year, its total revenue increases by 9% and during past year, it generated $56 billion in revenue. It is the most expensive stock in the world however it is the safest pick that one will ever have.
c) NextEra Energy – Sean Williams: Nothing is certain in stock market however among the safest stocks for long term investments; we can NextEra Energy (NYSE: NEE) is highly recommended.
Mainly two factors are responsible for its success; focus on alternative energy products and another one is its acquisition with its rival Oncor. This company is the world’s largest generator of renewable energy from wind and sun.
Its projects may seem costly however their long term costs are lower as compared to many of its peers as it has taken various proactive steps to reduce its dependence on fossil fuels.
NextEra Energy pays out a superior 2.9% dividend yield and its payout has doubled since 2008. There’s lot of risk-averse investor to like here.
So, save your money and invest them in one of the well-known as well as safest stocks and then just keep viewing your progress.