Dow notches up best week since January
Stocks in the US got off to a positive start as investors look forward to next week Federal Reserve interest rate decision. The focus for traders beginning with the Feds two day meeting that starts on September 17, will be how much tapering will take place in an effort to reduce the current 85 billion per month of fixed income purchases.
In corporate news on Friday, Twitter Inc. (NYSE:TWTR) broke the news that it has filed confidential paperwork to begin the process for its highly anticipated public offering. Twitter’s IPO comes as Facebook (NASDAQ:FB) has recovered its stock losses and is now more than 15% higher than its IPO price. SunEdison gained nearly after saying its public sale of 30 million shares has been priced at $7.25 per share. Underwriters have a 30-day option to buy an additional 4.5 million shares.
In central bank news, the White House reportedly said that Larry Summers would get a nomination as Fed Chief, which was immediately denied by the administration.
In US economic news, retail sales came in below forecast notching up a print of 0.2% rise and a 0.1% gain ex-autos. Consensus was looking for a 0.5% gain. The impact of that miss will be dulled by an upward revision to the prior month, which now shows a 0.4% gain vs. 0.2% prior and a 0.6% ex-autos rise leaving the two months together not really that far from expectations. Core retail sales, which strip out autos, gas and building materials, rose 0.2%, with July not revised at a 0.5% gain.
Equity prices climbed throughout the trading session with all major indices settling in the black. The Dow Industrial Average index notched the best week it’s seen in 2013 since January.
Momentum on the Dow Industrials is strong with the MACD printing in positive territory, the RSI edged higher printing near 63, which is in the upper level of the neutral range.
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