Bloomberg is reporting that rallies from Brazil to Japan are triggering large gains around the world, inspired the the United States stock market. Global equities are now estimate at $66 trillion dollars, and has dded more than $2.2 trillion dollars in value since Aug. 7. U.S. stocks rose to another record level at the close yesterday, as the Standard & Poor’s 500 Index closed above the 2,000 mark for the first time, after piercing the 2,000 mark in Monday trading, as reports showed the biggest ever jump in durable-goods orders of 22.6 percent, according to Bloomberg.
Stock market analysts are buoyed by the numbers, even prompting one analyst to say the S&P 500 could hit 2,150 shortly. That is according to Sam Eisenstadt, a former research director at Value Line Inc. Eisenstadt retired from that firm in 2009, after 63 years, and has a history of accurate projections.
Add to that durable-goods orders jump was an unexpected increase in consumer confidence. In addition, the Dow Jones Industrial Average added 29.83 points, or 0.2 percent, to 17,106.70, also reaching an all-time high intraday. About 4.5 billion shares changed hands on U.S. exchanges today, 20 percent below the three-month average.
This is a continuation of the "Obama Stock Market," as the Dow and the S&P 500 have continued on its meteoric rise. On President Obama's first inauguration day on Jan. 20, 2009, the DJIA was sitting at 7,949.09. It then bottomed on March 9, 2009 at 6,547.05, which at the time was its lowest level since 1997.
Goldman Sachs reported that on March 3, 2009, with the S&P 500 then trading at 696, Obama said "What you’re now seeing is profit and earnings ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it."
Since March 9, the Dow has not looked back, supported by an improving economy, which in recent months has been growing faster than expected. In an analysis last month on Marketwatch.com, the Obama presidency has had once of the best stock market performances in American history. Obama has easily outperformed the conservative icon, Ronald Reagan. If Obama's stock market rally continues, he will beat the all-time stock market leader, President Bill Clinton. Either way, it is unprecedented for a "Stock Market Rally" to endure as this one for virtually the entire Obama presidency.
In stock action, Tim Horton of Canada jumped 8.5 percent after Burger King Worldwide Inc. agreed to acquire the coffee-and-doughnuts chain in a $11.4 billion cash-and-share deal. Warren Buffet is said to be involved in the financing of the deal, but it has caused controversy because of the possibility of "inversion," using the corporate tax laws by claiming its headquarters are in a foreign country.
Amazon rose 2.3 percent after the company said it’s buying video-game service Twitch Interactive Inc. in one of its biggest acquisitions in their history. Best Buy Co. dropped 6.9 percent after posting a same-store sales decline that disappointed.
In some other stocks, Marketwatch.com reported that DSW Inc., a shoe retailer, jumped 9.2 percent to $30.99 after reporting higher-than-estimated profit. Shares of Kite Pharma Inc., rose 17.7 percent after the company, a biotech firm, reported the majority of patients responded positively to its "cancer-drug candidate."