Wall St Finds Fresh Highs
Yet another record closing for Wall Street stocks - but not for commodities like gold or oil. Our market will be up more than 30 points if the overnight trading on the ASX 200 is any guide.
Driving the markets higher were a combination of Republican efforts to overhaul the US tax system which passed the House of Representatives and the confirmation of a new Fed member who will oversee financial regulation.
The S&P 500 rose 0.6% to 2,552.07 — advancing for the eighth straight day and notching its longest streak of gains since 2013 — and led by a 1.1% gain in the technology sector and 1% rise in the financials sector.
That also marked the sixth consecutive record closing high for the S&P 500, the longest such streak for the index since June 1997.
The Dow climbed half a per cent to 22,775.39, while the Nasdaq jumped 0.8% to 6,585.36.
Gold fell by around $US6 to $US1,270 an ounce and after dipping back under $US50 a barrel, US crude futures edged back over that level in early Asian trading.
The latest leg in the current rally in US shares came after the House of Representatives on Thursday passed a 2018 budget resolution that could help Republicans bypass Democrats in pushing through tax reform.
Shares were also buoyed after data overnight showed the US trade deficit had narrowed and exports risen in August which could help lift third-quarter growth.
And banks and other financials jumped after the Senate confirmed Randal Quarles as the Federal Reserve’s supervisory chief.
Mr Quarles is seen as taking a softer stance on bank regulations.
A stand out mover was the streaming video giant, Netflix whose shares jumped 5.4% after it revealed it was planning price rises for the US and UK markets for some of its mid and top tier subscription packages.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.