Latest Stories

High liquidity keeps driving US stocks up

WASHINGTON — US stocks sustained their push upward on Friday, capping the week with the Dow hitting its best level since Dec. 10, 2007, as high liquidity and ultra-low interest rates fuel an appetite for risk.

Investors remained hesitant during the week though as still-slow economic growth underpins a cautious outlook for corporate earnings, the third quarter reporting season beginning on Tuesday.

For the week the Dow Jones Industrial Average added 1.29 percent to end at 13,610.15, rising three straight sessions to Friday.

The broad-based S&P 500 ended up 1.41 percent in the week, finishing at 1,460.93, still 14 points below its high for the year.

The tech-heavy Nasdaq only put on 0.64 percent in the week, to 3,136.19, a 2.1 percent fall in its largest company, Apple, pulling it lower Friday.

The markets appeared ready to end the week on a strong bullish note early Friday after the Labor Department announced the jobless rate had fallen sharply to 7.8 percent in September, the lowest level since January 2009 and a good sign for President Barack Obama as he fights for re-election.

“While the media may be concentrating on the fact that payroll levels deteriorated in September, the underlying trends in the data were extremely positive,” said Briefing.com.

But with a long weekend ahead — though markets will be open on the Columbus Day holiday Monday — investors sold off stocks in the afternoon for a fairly flat final day of the period.

“We erased the bulk of the day’s rise at the end of the session because there was no longer anyone in the market, as often happens these days on Friday afternoon,” said Gregori Volokhine of Meeschaert France.

Brokers said there was still a lot of cash available for investing, and that investors would continue to support the market, especially given the Federal Reserve’s commitment to its new QE3 stimulus program.

“As the market continues to make new highs and confidence slowly comes back, there are still enormous amounts of cash on the sidelines, which could continue to push this bull market much higher for a very long time,” said Ryan Detrick of Schaeffer’s Investment Research.

The coming week will supply fresh data on the US international trade balance in August (Thursday), producer prices in September (Friday) and consumer sentiment (Friday).

The data is expected to provide little direction on the economy, however, except for a strong rise in gasoline prices behind the producer price figure.

Most attention will be on earnings, which will include Alcoa on Tuesday and JP Morgan Chase on Friday.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Markets and Exchanges , Stock Activity , US stocks

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Malang the croc must regain strength before return to swamp, says mayor
  • Palace: Lacson’s version of Napoles testimony to be evaluated
  • Scientists eye iceberg bigger than Guam
  • Drilon: I’m not on Napoles’ list
  • Sonar finds 1888 San Francisco shipwreck
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • Entertainment

  • Smithsonian wants photos, videos for ‘Day in the Life of Asian Pacific Americans’
  • What Garcia Marquez left behind
  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Business

  • How ‘one percent’ economic elite was uncovered
  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Obama to visit Filipino soldiers in Fort Bonifacio
  • Fil-Am youth conferences unite under one theme
  • Embassy advisory: Filipinos still need visas to enter US
  • No travel restriction to Mideast, DFA clarifies
  • PH-HK relations repaired, but families of victims still being courted
  • Marketplace