*from www.money.cnn.com, Mar. 4, 2013 (To view original article click here.)
Take Away #1: U.S. stocks ended higher Monday, as investors remain optimistic about the economy despite federal spending cuts.
Key Facts and Figures:
- After languishing in the morning the Dow Jones Industrial Average gained nearly 0.3% for the day.
- The Dow is now less than 40 points away from its all-time closing high and only about 70 points below its intra-day high.
- The S7P 500 rose nearly 0.5% and is within striking distance of all-time highs.
- The Nasdaq added 0.4%.
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Take Away #2: The March spending cuts that came into effect March 1 seem to have been shrugged off by the market, even as Economists sat the cuts could affect growth later this year.
Key Facts and Figures:
- The markets closed up for the day even as the $85 billion in spending cuts known as ‘the sequester’, came into effect March 1.
- Many investors believe the cuts will eventually be replaced with a more targeted plan making its impact on the economy less dramatic than feared.
- Fed vice chair Janet Yellen echoed Fed Chairman Ben Bernanke’s speech, saying on Monday that she hopes low interest rates will succeed in promoting a “return to prudent risk-taking”.
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Take Away #3: Stocks did see pressure earlier in the day as investors focused on threats to the global economy.
Key Facts and Figures:
- Chinese stocks tumbled after the government in Beijing announced new measures to avert a real estate bubble, with the Shanghai Composite losing 3.7% and the Hang Seng declining 1.5%.
- Japan’s Nikkei however added 0.4%.
- U.S. companies with greater exposure to China were among the worst performers: Caterpillar (CAT), Alcoa (AA) and United Technologies (UTX) were all down.
- European stock markets ended mixed, as Italy remains a concern after elections last month left the euro area’s third largest economy without clear leadership.
Take Away #4: Investors may get a clearer picture of America’s economy later this week with reports due from the government on productivity and the job market.
Key Facts and Figures:
- The monthly report on payrolls and the unemployment rate comes out on Friday.
- The dollar was up against the euro on talks that the European Central Bank may signal a rate cut as early as this week.
- Oil prices sank but managed to close above $90 a barrel.
- Gold prices inched higher and the 10-year Treasury note rose to 1.87% from 1.85% on Friday.
*To view original article from www.money.cnn.com click here.