Indeed, we doubt that it will even have much effect on the macroeconomic outlook for China itself.
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GLOBAL CONCERNS: “I think it’s a combination of fears”, said Hank Smith, chief investment officer at Haverford Trust. The Greece deal “is not done, but we’re closer than we have been in a while”.
The Standard & Poor’s/TSX Composite Index rose 132.58 points, or 0.9 percent, to 14,411.07 at 4 p.m.in Toronto. The Dow Jones industrial average climbed 211.79 points, or 1.2 percent, to 17,760.41.
Seven of the 10 major S&P 500 sectors were higher, with the financial index leading the gainers with a 0.77 percent rise.
ANOTHER TAKE: “Optimism that Greece and its creditors can come together and reach an agreement has helped stocks push higher”, said Jasper Lawler, market analyst at CMC Markets. The Shanghai Composite rose 5.2 per cent this week, snapping three weeks of losses.
But mainland Chinese shares jumped, recovering from their recent swoon after 28 companies agreed to postpone planned initial public offerings and brokerages pledged more than $19 billion for a fund to stabilize the free-falling market.
For these reasons, we at ETF Channel find value to putting together these rankings, because both the top and the bottom ends of the lists can often make for some interesting stock picking ideas for further research. Early previous year, biotechnology and some darlings of the technology stock universe were caught in a selloff when the market felt share prices had outstripped fundamentals, like the rate at which profits (if any!) and sales were growing.
Cablevision jumped 7.3 percent to $26.67 on a Wall Street Journal report that French billionaire Patrick Drahi was looking at cable targets for acquisitions.
Investors also followed a speech by Federal Reserve Chair Janet Yellen on Friday.
Speaking in Cleveland, Yellen said the Fed is on track to start raising interest rates later this year but expressed concerns over headwinds that are holding back the nation’s economy – in particular, lingering weakness in the labor market and new potential threats overseas.
A woman looks at a tablet in front of electronic stock board of a securities firm in Tokyo, Friday, July 10, 2015.
Results from Johnson & Johnson, JPMorgan Chase and Intel are all due next week.
“If they really do get a deal hammered out, I would expect the market to rally very strongly”, said Tom Cahill, a portfolio strategist at Ventura Wealth Management. While that would be the first contraction in earnings in nearly six years, the figures are distorted by a big drop in energy company earnings because of the collapse in oil prices last year. Perhaps more important is the continued fall in long term credit yields, which dropped another 5.6 bp last night.
The yield on the 10-year Treasury note rose to 2.391% from 2.301% on Thursday. The dollar rose to 122.13 yen from 121.71 yen.
U.S. stocks rose on Thursday as trading returned to normal at the New York Stock Exchange (NYSE) and Beijing’s efforts to halt a rout in Chinese stocks lifted markets around the world. Brent crude was off 48 cents at $56.38 a barrel in London.
– On commodities Dalian iron ore is up sharply this morning but U.S. futures went the other way with the curve out past January 2016 in the $40/$41 per tonne region. Copper fell 1.3 cents to $2.55 a pound.
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– Wholesale gasoline rose 4.6 cents to close at $2.045 a gallon.
