S&P Hits Record as Senators Reach Deal to End Shutdown
By: Eddy Peng Jan 23, 2018
U.S. stocks climbed on Monday as each of Wall Street’s main soared records in the wake of a deal by U.S. senators to end the federal government shutdown. The S&P 500 surged 1.10 percent or 30.8 points to end at 2833.7.
For S&P 500 on Monday, the biggest gainers of the session were FirstEnergy Corporation (NYSE: FE), which rose 10.37 percent or 3.05 points to close at 32.45. Wynn Resorts Limited (NASDAQ: WYNN) gained 8.68 percent or 15.59 points to end at 195.23.
However, the biggest losers included Chipotle Mexican Grill In (NYSE: FB), lost 4.03 percent or 13.87 points to end at 330.00, while Ulta Beauty Inc (NASDAQ: ULTA) declined 3.74 percent or 9.12 points to 235.01.
Legislation to renew federal funding to the government cleared a hurdle in the Senate and was expected to pass votes in the Senate and House of Representatives very soon, allowing government to re-open as early as Feb 8.
It is a fact that the U.S. government shutdown did not have a significant negative impact on the economy as a whole, same as expectation from economists and previous situations.
Earnings growth of 12.4 percent is expected for the quarter, according to Thomson Reuters data. Of the 55 companies in the S&P 500 that have reported earnings through Monday morning, 80 percent have topped expectations, well above the 72 percent beat rate for the past four quarters.
What coming up next this week is the annualized GDP of the fourth quarter, which investors should keep a close eye on, having a forecast of 3.0 percent. In addition, the Durable Goods Orders and Advanced Goods Trade Balance are also those important data to maintain the economy in a good condition and momentum.
Figure 1: SPX500 Daily
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