The Director of research at Fenimore Asset Management in Cobleskill, New York, John Fox, said in a phone interview, “All the fundamentals still line up that stock prices can go higher. Interest rates are still low, the economy’s getting better. All of that is still a good environment for equities.” According to Bloomberg News, John Fox reported that “The few earnings that we’ve had so far have been coming in pretty well.”
Investors got some encouraging news about interest rates. “Investors were braced for poor results, and at least so far, the numbers have been better than feared,” said Lawrence Creatura, portfolio manager at Federated Investors according to CNBC.
The Federal Reserve’s latest policy meeting reassured investors that the central bank won’t move quickly to increase the interest rates.
For its longest streak since October, U.S. stocks rose a fifth day. Bloomberg News reported the S&P 500 jumped 2.7 percent last week, the most since July to rebound from the previous week’s technology-led selloff. U.S. equity markets were closed on April 18 for the Good Friday holiday. According to data, an index of economic strength in the U.S. rose in March by the most in four months. Alcoa, the aluminum maker rose 4 percent. Netflix and Zions Bancorporation are among S&P 500 companies who have reported earnings. The benchmark index is 1.2 percent below its record high reached April 2.
Head of equity sales at Robert W. Baird & Co. in London, Patrick Spencer, who helps oversee more than $100 billion as shared in a phone interview that, “I suspect most companies are going to raise guidance for the upcoming quarters thanks to the pumped up demand and the spring thrall.” According to Bloomberg news Spencer said that “The economy remains in a sweet spot. I’m very optimistic for this year.” Gold slid to a two-week low and wheat dropped 3.5 percent.
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