Daily Investment Strategy
Hang Seng Index rose 65 points on Thursday
The Hang Seng Index rose 65 points or 0.4% to 15,944 on Thursday. HSTECH rose 25 points or 0.8% to 3,223 and HSCEI rose 24 points or 0.5% to 5,410. Daily market turnover was HK$47.0bn.
S&P closes at record high
The S&P 500 closed at a record high on Thursday, led by a surge in energy stocks, which boosted sentiment after economic data showed signs of weakness in retail sales. The S&P 500 rose 0.58% to close at 5,029.73 points, and the Nasdaq rose 0.30% to close at 15,906.17 points. The Dow Jones Industrial Average rose 348.85 points to close at 38,773.12 points, an increase of 0.91%. Occidental Petroleum Corporation rose nearly 5%, pushing the energy sector overall higher after Warren Buffet's Berkshire Hathaway revealed late Wednesday it had raised its stake in the oil major by about 9% in Q4. Occidental Petroleum Corp. also reported quarterly results that beat Wall Street expectations, with production better than expected. Earnings season continues to paint a chaotic picture for corporate. Tripadvisor's revenue and profit beat estimates, sending its shares up 9%. On the other hand, Cisco shares fell 2% after the company announced layoffs and a weak sales outlook. Deere & Co. shares fell 5% after the agricultural machinery maker lowered its full-year profit forecast. On the economic data front, the labor market continued to show signs of strength, with initial jobless claims falling by 8,000 to 212,000 in the week ended February 10, beating expectations for a decrease of 1,000 and indicating continued strength in the labor market.
Consumer strength in doubt after retail sales fall more than expected
The U.S. Commerce Department said on Wednesday that retail sales fell 0.8% last month. That was larger than the 0.2% drop economists expected. This has raised concerns about the purchasing power of U.S. consumers under the weight of sticky inflation and high interest rates. U.S. Treasury yields subsequently fell.
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