NEW YORK—Market bulls have firmly taken control over the last two weeks, sending the U.S. markets up for a second consecutive week and the Dow Jones Industrial Average to an 11-month high.
On positive economic news and last week’s declaration that the recession is over by Federal Reserve Chairman Benjamin Bernanke, the Blue Chips added 214.79 points last week, up 2.2 percent, while the broad-based S&P 500 Index gained 2.5 points to finish at 1,068.30 points.
Last Friday’s trading was light due to the start of Rosh Hashanah, the Jewish new year, but several key players received good news. Consumer products giant Procter & Gamble (NYSE: PG) was upgraded to “Buy” rating by Citigroup, sending shares up $1.82 (3.28 percent) to $57.35.
JP Morgan analysts upgraded their views on the homebuilders sector, from negative to positive. “While fundamentals will likely not demonstrate an uninterrupted solid rate of improvement over the next six to 12 months, we believe that not only is housing solidly past its trough, but over the next 24 months will continue to recover and drive further upside to the current rally in the home-builder stocks,” JP Morgan wrote in a note, according to MarketWatch. Housing giants Toll Brothers Inc. (NYSE: TOL) and KB Home (NYSE: KBH) were both upgraded by JP Morgan.
Apple Inc. shares (Nasdaq: AAPL) have also been on the move. The computer giant gained 7.5 percent last week, ending at $185.02 in Friday trading.
The U.S. dollar has been on a decline against a basket of six foreign currencies, sending gold and other commodities higher in recent weeks. The fall in the dollar could benefit exporters and U.S. industrial giants.
Last week, weekly U.S. unemployment filings posted a surprise drop, from 557,000 the previous week to 545,000 last week, according to the U.S. Labor Department. Economists polled by Thomson Reuters expected a slight increase.
On positive economic news and last week’s declaration that the recession is over by Federal Reserve Chairman Benjamin Bernanke, the Blue Chips added 214.79 points last week, up 2.2 percent, while the broad-based S&P 500 Index gained 2.5 points to finish at 1,068.30 points.
Last Friday’s trading was light due to the start of Rosh Hashanah, the Jewish new year, but several key players received good news. Consumer products giant Procter & Gamble (NYSE: PG) was upgraded to “Buy” rating by Citigroup, sending shares up $1.82 (3.28 percent) to $57.35.
JP Morgan analysts upgraded their views on the homebuilders sector, from negative to positive. “While fundamentals will likely not demonstrate an uninterrupted solid rate of improvement over the next six to 12 months, we believe that not only is housing solidly past its trough, but over the next 24 months will continue to recover and drive further upside to the current rally in the home-builder stocks,” JP Morgan wrote in a note, according to MarketWatch. Housing giants Toll Brothers Inc. (NYSE: TOL) and KB Home (NYSE: KBH) were both upgraded by JP Morgan.
Apple Inc. shares (Nasdaq: AAPL) have also been on the move. The computer giant gained 7.5 percent last week, ending at $185.02 in Friday trading.
Falling Dollar and Recession Ending
Bernanke declared earlier in the week that the recession has probably ended, but warned that recovery may be choppy and slow, especially in employment.
This week, traders will focus on new and existing home sales data from August, which could provide more clues on the health of the real estate market.The U.S. dollar has been on a decline against a basket of six foreign currencies, sending gold and other commodities higher in recent weeks. The fall in the dollar could benefit exporters and U.S. industrial giants.
Last week, weekly U.S. unemployment filings posted a surprise drop, from 557,000 the previous week to 545,000 last week, according to the U.S. Labor Department. Economists polled by Thomson Reuters expected a slight increase.
