{"id":14150,"date":"2017-07-13T00:05:53","date_gmt":"2017-07-13T00:05:53","guid":{"rendered":"http:\/\/www.ceo-na.com\/?p=14150"},"modified":"2017-07-16T20:23:03","modified_gmt":"2017-07-16T20:23:03","slug":"trust-the-rally","status":"publish","type":"post","link":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/printed-version\/trust-the-rally\/","title":{"rendered":"Trust the rally?"},"content":{"rendered":"
\n
\n
\n
\n

Tech companies are pulling the wagon.<\/strong><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

<\/p>\n

\n
\n
\n
\n

Amazon\u2019s shares have gained over 33% during the year while Alphabet, Google\u2019s parent, has gained 25%.<\/p>\n

The stock market sees how this firms jump from one purpose service to add several more and evolve into practical ecosystems full of value.<\/p>\n

The U.S. stock market has repeatedly hit record highs during 2017, propped by strong gains by tech and financial companies, as economic indicators for the world\u2019s largest economy continue showing signs of improvement and market players focus expectations on promised upcoming tax legislation by President Donald Trump, but signs of a slowing economic growth might still give pause to investors.<\/p>\n

\n
\n
\n
\n

Large gains by the likes of e-commerce giant Amazon (NASDAQ:AMZN) \u2013which hovered around the US$1,000 per share mark through most of May\u2013 and Alphabet (NASDAQ:- GOOGL) seem firmly anchored on investors optimism around the digital economy as tech companies now take up the top five spots on the most valuable firms in the world, with Apple (NASDAQ:APPL) topping the list at slightly over US$800 billion. Amazon\u2019s shares have gained over 33% during the year while Alphabet, Google\u2019s parent, has gained 25%.<\/p>\n

\n
\n
\n
\n

The Standard & Poor 500 index edged repeatedly above the 2,400-point mark during May. And the joy seems to have spread overseas. \u201cThe proportion of individual shares in several major indexes trading above their 250-day moving average has hit a two-year high. In Europe and Japan, this proportion is above 80%,\u201d wrote BlackRock\u2019s Chief Investment Strategist Richard Turnill in a recent blogpost titled Equity Strength in Numbers. \u201cHigh stock market breadth gives us confidence in the sustainability of gains,\u201d he added. Market breadth is a reference of how many companies are going up on a market as compared to how many are losing value.<\/p>\n

\n
\n
\n
\n

A large part of the market performance has been attributed by market observers to the new White House administration\u2019s business-friendly message: \u201cMuch of the catalyst behind the market\u2019s advance over the past several months has come on hopes that President Trump\u2019s administration would push through legislation on taxes and regulation that would boost corporate profits and accelerate growth,\u201d said website Market Watch in a recent market report.<\/p>\n

\n
\n
\n
\n

Official data, however, might temper expectations, as the US\u2019 Federal Reserve has warned about slower economic activity. On its May 3 statement, the Fed\u2019s Open Market Committee decided to keep its key rate unchanged, arguing that despite \u201csolid\u201d gains in job creation in the country, \u201cgrowth in economic activity slowed.\u201d<\/p>\n

\n
\n
\n
\n

\u201cThe Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further,\u201d it added. Also, the political landscape could throw a spanner in the works if more unsettling news about North Korea\u2019s nuclear capabilities or about OPEC\u2019s oil policy cause renewed worries in the market.<\/p>\n

\n
\n
\n
\n

But \u201cif anything, history suggests that long-term investors should buy stocks after markets fall on bad geopolitical news, not sell,\u201d said The New York Times columnist James B. Stewart on his \u201cBuy? Sell? Politics May Move the Market, but Rarely for Long.\u201d<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Tech companies are pulling the wagon.<\/p>\n","protected":false},"author":8,"featured_media":14151,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[199,198,197],"class_list":["post-14150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-printed-version","tag-alphabet","tag-amazon","tag-rally"],"_links":{"self":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/14150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/comments?post=14150"}],"version-history":[{"count":1,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/14150\/revisions"}],"predecessor-version":[{"id":14152,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/14150\/revisions\/14152"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media\/14151"}],"wp:attachment":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media?parent=14150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/categories?post=14150"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/tags?post=14150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}