Back
Register for SMS Alerts
or enter your details manually below...
First Name:
Last Name:
Email:
Password:
Hometown:
Birthday:
Sorry, we couldn't find that email.
Existing users
Email
Password
Sorry, we couldn't find those details.
Enter Email
Sorry, we couldn't find that email.

Don’t look down | Calamatta Cuschieri

Promises of tax reform and fiscal stimulus propels US stock markets to record highs

calamatta_cuschieri
Calamatta Cuschieri
14 February 2017, 9:18am
The main stock indices hit new intraday highs on Monday, led by banks and industrial stocks
The main stock indices hit new intraday highs on Monday, led by banks and industrial stocks
Hopes of an expansionary fiscal stance by the US government were strongly rekindled by President Donald Trump last week, setting the stage for a rally in stock markets which is – not unexpectedly – very pronounced in the US. The main stock indices hit new intraday highs on Monday, led by banks and industrial stocks.

Renewed optimism about the American economy took hold after a few sessions which saw the mood dampened by worries over a possible protectionist trade war brought about by recent policy statements by the Trump administration. The S&P 500 exceeded combined market capitalization of $20 trillion for the first time in its history. Data compiled by Reuters indicates companies listed on the exchange to be on track of strong quarterly earnings growth, possibly the highest in more than two years.

In the ‘biggest gainers’ space, Zeltiq Aesthetics surged after news that drugmaker Allergan is buying the company for around $2.5 billion. In per share terms, that’s approximately a 14% premium over Zeltiq’s close last Friday. Pretty good.

Du Pont spinoff Chemours also racked up double-digit gains after settling personal injury lawsuits for amounts on the lower end of expectations. Parent Du Pont, which was expected to chip in for a small portion of the damages, said it would pay half of the charges, lowering the overall burden for Chemours.

Car-tales

Oil fell heavily on Monday, despite a report by the oil-producing and exporting cartel countries that its members were showing a high-degree of compliance with last year’s deal to cut production.

Deeper than expected cuts by Saudi Arabia took overall compliance to around 93%, but the cuts were offset by a higher US oil rig count. The latter stands at around 591 rigs – a 15-month high – as rigs which previously shutdown due to low prices have been lured back by the rise in prices.

This article was issued by Andrew Martinelli, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

calamatta_cuschieri
Calamatta Cuschieri is one of Malta’s largest financial services firms. The company offe...
DealToday
Latest Business News
Business News 21-10
From Rome to Malta, via Panama and Dubai: the Vatican bank claims its financial advisors and their Maltese firms used its millions to make a...
Business News 20-10
Banif Bank has rebranded into BNF Bank as it rolled out its new brand identity and divulged plans to expand into asset management and invest...
Business Comment 20-10
Correcting markets, Goldman’s contingency plans & Spain toughening up on Catalonia
Law Report 20-10
A plea claiming that an action is time barred, may be cancelled if one pleads that the claim itself is overstated
Business Comment 19-10
Earnings driving markets, Snapchat presenting next Winter Olympics and good times for IBM