Stocks rise as Fed's Powell says economy is strong
Why investors are feeling good about the stock market
UBS Wealth Management USA senior portfolio manager Alan Rechstchaffen on why investors feel good about the current state of the economy and stock market.
Stocks ended the week on a high note after Federal Reserve Chairman Jerome Powell’s positive comments on the economy. Powell said that he expects further, gradual rate increases and said the economy is "strong," in a prepared speech on Friday.
Both the S&P 500 and the Nasdaq closed at record levels, as did the Russell 2000, which tracks domestic companies. The Dow and the S&P 500 have registered gains for two consecutive weeks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 30932.37 | -469.64 | -1.50% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13192.345407 | +72.91 | +0.56% |
| SP500 | S&P 500 | 3811.15 | -18.19 | -0.47% |
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While Powell was the main event for many investors on the summer Friday, the durable goods orders were released, and orders fell 1.7% in July versus expectations for a 0.5% drop. Durable goods are consumables that last three years or more.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:OIL | n.a. | n.a. | n.a. | n.a. |
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As for commodities, U.S. oil prices gained over 1 percent closing around the $68 level.