US shares advance; Dow breaks 15,000

Stocks on Wall Street have made modest gains today, with the Dow Jones climbing above the psychologically-significant 15,000 level after a slump in durable goods orders makes tapering at the next Fed meeting less likely.


By early afternoon in New York, the Dow Jones was trading at 15,042 up 0.21% or 31 points. Despite a positive couple of sessions back-to-back, the Dow is on course for its worst monthly performance since May.

The other major US stock indices also advanced, with the S&P 500 rising 0.28% to 1668.2 and the NASDAQ 100 gaining 0.75% to 3145.7.

A report from the Commerce Department showed that durable goods orders plummeted 7.3% in July, the biggest drop in close to a year. Expectations had been for a drop of 4% . The transportation component is notoriously volatile, but even excluding this, the core number fell 0.6%. This is a significant result, and has potentially big implications for the Fed’s decision of whether to taper next month or not.

Alongside mortgage rates that have been climbing and some signs of softness in the housing market, this may be enough to convince the Fed to either defer the start of tapering or begin to scale back stimulus by only the smallest of margins.

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