The Dow, founded in 1896 with a selection of thirty funds designed to provide the most representative picture of American business, closed at 30,046.24 points, an increase of 1.5%.
The S & P500 index ended 1.6% higher, the Nasdaq index rose 1.3%.
Especially the news about the good results in the test of corona vaccines developed by Pfizer and Moderna caused enthusiasm because of the prospect of the disappearance of the lockdowns and an expected sharp economic recovery.
Joe Biden’s election victory earlier this month has also contributed to investor appetite for purchase. The new American president is expected to focus on, among other things, extensive fiscal stimulus to boost the economy.
In addition, it is anticipated that Biden will improve relations with the allies. Furthermore, Trump seems to gradually see that the White House will be changing in January.
Listed with the major funds Tesla 6.4% profit, making it worth $ 525.6 billion.
Nabeurs went HP up 9% on better than expected sales last quarter.
General Electric closed 3.8% higher. Ford Motor Company drove off with 6.7% profit, oil company ConocoPhilips became 3.9% more expensive and Marathon Oil 4,5%.
Aviation companies like Delta Air Lines, American Airlines in United Airlines won up to 8% – only to drop back later – despite gloomy forecasts from the international trade association IATA.
Bargain chain Dollar Tree rose 14.1% with the prospect of more sales. Earnings of $ 1.39 per share came well above consensus expectations of $ 1.15.
Cruisemaatschappij Carnival was worth 10.5% more on the stock market at the close.
Among other things, the funds included Tiffany against (+ 0.2%). The American jewelry chain sold nearly as many diamonds and jewelry in the third quarter as in that period a year earlier. Tiffany’s sales, which are being acquired by French luxury group Louis Vuitton Moët Hennesy (LVMH), exceed $ 1 billion.
Also Abercrombie & Fitch (+ 1.2%) recovered. It posted lower sales in that third quarter, but did see strong growth in online sales.
Best Buy closed flat. The group reported more quarterly sales over the past three months. Sales were up 21% year-over-year to $ 11.9 billion. His net income increased from $ 293 million to $ 391 million.
Oil price is rising
On optimism, the price of US oil rose to its highest point since the corona vaccine outbreak. Traders see profit in oil again if the economy starts to spin faster in 2021 thanks to a vaccine.
The dollar, always sought out as a traffic island, fell 0.3% in the broad dollar index. In the bond markets, the fee for 10-year US Treasury notes rose to 0.868% from 0.857%.
The US Case-Shiller housing index rose 6.6% in September year-on-year, according to the latest report.
Gold immediately depreciated by 1.7% at $ 1807 per troyounce (31.1 grams).
Dow Jones’ historical role
After the good course of events in the first months of 2020, the Dow took another dive in March after the outbreak of the corona crisis. Especially companies with high exposure to pandemic, such as aircraft manufacturer Boeing, experienced difficult times. The Dow dipped below 21,000 points at its low point on March 18
From April onwards, investors’ mood cleared up. The rapid intervention of the US central bank (Fed) – including lowering the main interest rate in two steps to almost 0% – and the intention of the Fed to purchase shares in addition to bonds when starting the buy-back program played a role. an important role in this.
The stock market climate also warmed up in the summer months. In August, the Dow posted a net plus of 7.7%, helped by overweight strong results from corporate America.
This month, the oldest indicator in the US is even better. The Dow has skyrocketed more than 14% since late last month.
In contrast to the S&P and the Nasdaq, the oldest indicator in the US is a price-weighted index, which means that it is not the market value of companies that plays a major role, but the absolute share price is important.
The Dow has had a tailwind, especially from the beginning of this century. At the end of 2003, the index passed the 10,000 point mark for the first time. At the beginning of 2017, the limit of 20,000 points was still ticked. Especially the enthusiasm to enter large tech funds, such as Apple and Microsoft, made the impressive advance possible.