Monday, November 29, 2021

Stocks rise on optimistic ECB action and second-quarter earnings

U.S. stocks rose Tuesday, with the Dow Jones industrial average notching its best day in two months, as traders remained optimistic that the European Central Bank will take measures to reduce borrowing costs for troubled countries.

The Dow rose 157.15 points, or 1.21 percent, to 18,445.77. The Standard & Poor’s 500 index gained 18.15 points, or 1.06 percent, to 2,184.56. The Nasdaq composite added 27.01 points, or 0.5 percent, to 5,151.20.

Cameron Brandt, CEO of Capital Markets Wealth Management, sees the stock market as reflecting a number of positive trends.

“Strong GDP and rising corporate profits has resulted in increasing confidence in the business sector and corporations,” Brandt said. “Furthermore, the strong second quarter earnings season has continued to confirm that our economy is on solid footing and not in a bubble as some pundits are predicting.”

U.S. regulators took a closer look at short selling on Tuesday, sending stocks temporarily reeling. Traders who sell borrowed stock and then are unable to repurchase it at a lower price are known as short sellers. Traders who have covered their short positions could be taking short positions, and that market said these types of moves are typically one of the first indicators that a stock is heading lower.

In the stock market, companies focused on the U.S. housing market, such as home-improvement retailers, rose the most. Home Depot climbed $3.17, or 2.5 percent, to $132.46. Home furnishings maker Whirlpool Corp. rose $3.88, or 4.8 percent, to $101.02.

Cisco Systems climbed $1.44, or 4.1 percent, to $37.65. The network equipment maker is reporting fourth-quarter earnings after the closing bell. Other financials also climbed. JPMorgan Chase rose $1.21, or 2.4 percent, to $65.18.

The price of gold fell $8.50, or 0.8 percent, to $1,234.70 an ounce. The price of crude oil rose 26 cents, or 0.3 percent, to $47.72 a barrel in New York. The 10-year Treasury yield fell to 2.37 percent from 2.44 percent late Monday.

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