U.S Stock market review September 14, 2018
Dow Jones Industrial Averages closed up 147.07 points (+0.57%) at 26,145.99, Nasdaq up 59.48 points (+0.75%) to 8,013.71, and S&P 500 up 15.26 points (+0.53%) to 2,904.18. Optimism about trade boosted the market on Thursday trading session. Earlier, U.S Treasury Secretary Steven Mnuchin reported sent an invitation to China for meeting to talk about trade. Aside from the trade, the stock market also buoyed by a bounce in the technology sector which has rallied four straight days.
ECB No change in interest-rate
European Central Bank leaves the interest-rate unchanged and reinforces the plan to end its massive bond-buying program in December. The Central Bank also said it expects no change in interest-rate until summer 2019.
The situation in Europe is not doing better despite the scheduled end of bond buying. ECB President Mario Draghi warned about rising protectionism risk while the bank lowered Eurozone growth forecast for 2018 and next year. The forecast for this year downgraded from 2.1% to 2.0% and next year from 1.9% to 1.8%.
Notable Earnings & Corporate reports
Adobe System Inc (NASDAQ: ADBE) topped analyst expectation by reported earnings per share of $1.73 vs. $1.69 expectation. Revenue comes out at $2.29 billion vs. $2.25 billion. Share prices up more than 1% before settled lower below the closing level.
Sears Holdings Corp (Nasdaq: SHLD) up more than 20% in after-hours. The company feared will not report earnings on Thursday after no report on intended hours. However, several hours after the intended hours the company turned in the report. SHLD reported widening second quarterly loss of $4.68 compared to the previous year second-quarter loss of $2.33. Revenue comes out at $3.2 billion vs. $4.3 billion last year.
Asian market follow U.S guidance
Nikkei up 221.51 points (+0.97%) to 23,042.83, China Shang Hai Composite down 6.18 points (-0.23%) to 2,680.40, and Australian ASX 200 up 37.80 points (+0.62%) to 6,166.50.
What to expect on Friday trading session
Optimism builds up in the stock market and global market after the re-initiation plan of trade talk between U.S-China. It is important for the market to see easing tension between two countries as recently both countries slapping tariff to each other. Earlier this week, China urge World Trade Organization to impose sanctions on U.S.
Friday trading session might continue positive as long as the trade talk progress smoothly. However, the situation could instantly slump if the trade talk turns sour.