Domestic equities rose marginally with the Dow Industrials capping its longest wining streak since 1996 after data showed retail sales increased in February the most in five months, bolstering confidence in the world’s largest economy.
Economic numbers from Europe dampened sentiment before markets opened today. Data released by the EU statistics office showed industrial production fell 0.4 percent on a monthly basis in both the 17-member euro area and the 27-member European Union.
In the UK, industrial production slipped 1.2 percent in January, leading to an increased chatter of triple-dip recession there.
US equities headed higher after a Commerce Department release showed a 1.1 percent advance in retail sales in February, more than forecast and followed a 0.2 percent rise in January. Analysts believe the US consumers are showing remarkable resilience, having absorbed the payroll-tax increase and the continued dysfunction in Washington.
The Dow Jones Industrial Average (DJIA) picked up 5 points. The blue-chip index marked a ninth straight day of gains, the longest such run since a 10-session winning streak in November 1996, and posted a seventh day of record closes.
The S&P 500 Index (SPX) added 2 points, which is less than 11 points from its all-time closing high set in October 2007, with consumer discretionary faring the best and telecommunications sliding the most among it 10 major industry groups.
Treasury prices rose Wednesday, pushing 10-year note yields from almost the highest level in 10 months after the Treasury Department’s $21 billion in Treasury notes auction drew the strongest demand since October.
The US dollar, meanwhile, advanced against most of its major rivals Wednesday after February retail sales exceeded expectations, boosting confidence in the world’s largest economy.
The greenback has shown a tendency recently to gain on positive economic data, underlining market expectations that a stronger economy will convince the Federal Reserve to wind down its ultra-loose monetary policy sooner rather than later.
Meanwhile, most European stocks finished lower Wednesday as weaker-than-estimated manufacturing data in Europe and rising Italian borrowing costs weighed on consumer confidence.
The Stoxx Europe 600 index shed less than 0.1 percent to close at 295.32, managing to eke out a fractional gain in a tepid session. The pan-European index trimmed earlier losses in London as Wall Street turned slightly positive on better-than-expected US retail sales data.
In regards to trends not much changed from yesterday, as market moves were rather timid. The Domestic Trend Tracking Index (TTI) closed the day slightly higher at +3.41% while the Interntaionlal TTI slipped to +10.30%.
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