Wall Street holds strong gains

It’s been a buoyant trading session in the US today, with momentum from yesterday’s rally picking up pace and pushing the Dow into triple-digit gains.

There has been an air of optimism on Wall Street the last couple of days, ushered in by upbeat earnings from the big US banks, and a succession of economic reports that seem to rebut the weakness indicated by last Friday’s employment data.

The Fed’s Beige Book today became the latest survey to offer up conflicting testimony, with anecdotal evidence suggesting increases in hiring in two-thirds of the Federal Districts. This gives credence to the theory that the December payrolls number may have been skewed lower by cold weather affecting parts of the US last month.

Nine of the 12 districts describe the economy as growing at a ‘moderate pace’, with the same proportion noticing an increase in retail activity since the last report. The inflation situation seems unchanged, with a majority of districts reporting that wage and price pressures were ‘contained’, remaining stable or increasing only slightly.

With under half an hour to the close in New York, the Dow was up 0.67% or 109 points at 16,483, while the S&P 500 had gained 0.52% at 1848.4.

Tomorrow we have initial jobless claims, more information about US inflation with December’s CPI, and a rash of earnings, including Goldman Sachs, American Express and Intel, all of which are components of the Dow Jones Industrial Average.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.