Stock Market Ends with Narrowly Mixed Stocks Due to Dow Jones High
Once again, the Dow Jones industrial average reached yet another record trading level high of the year. This has resulted to a narrowly mixed stock by the end of Monday, November 1, 2010.
This is the 3rd time in two consecutive weeks that the Dow Jones close down to its highest average of the year, and traders pulling back right after the closing. Investors appear to be very careful as they expect to have the midterm elections. All are waiting for the news on the Federal Reserve’s stimulus program before getting on with the trading. The details of the program are expected to be released later this week.
After reports on accelerated activity from manufacturers in the United States and China last month, the Dow started going up to as high as 125 points earlier in the day and it has continued to go up since then.
The Institute for Supply Management reported that its manufacturing index went up this October, which is a good sign of growth for the manufacturing industry. A poll conducted by Thomson Reuters on the country’s economists revealed that this development, however, is set to slow down this month.
In the industry, manufacturing has been considered as the most consistent and hopeful amidst the painfully slow growth of all the other sectors. Companies such as General Electric, United Technologies Corporation and Caterpillar Inc. have been reported to show great improvement after the news.
The Chinese stock market also reported the same rise, with stocks sharply rising this Monday. This growth was largely attributed to the country’s increased allocation for new infrastructures which led to the increased demand for the necessary equipment.
According to Mike McGevery, president of McGevery Wealth Management, China’s performance is a hopeful sign of good things to come.
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