Wall St. unfazed by North Korea missile test, economic data
(FinancialPress) — Friday‘s trading session opened with little movement despite North Korea‘s latest missile muscle flexing and plenty of domestic economic factors that were disclosed. The Dow even managed to rise a little bit more, thus setting a new record high.
Major indexes are floating at record highs, while investors await the Fed‘s Sept 19-20th meeting to get a glimpse of where monetary policy is headed in the future. While no changes are expected on that end, a December rate hike became more probable after Thursday‘s reports on inflation and consumer prices – factors the central bank keeps a close eye on.
A report shows that industrial output lowered this past August for the first time since January. Also, retail sales dropped last month rather unexpectedly. Hurricane Harvey data was included in both readings.
North Korea‘s latest missile test to fly over Japan drew unanimous disapproval and criticism from world leaders. The market, however, didn‘t pay much mind to it.
Scott Brown, chief economist at Raymond James in St. Petersburg, Florida, chimed in on the situation: “I think the market is kind of getting desensitized to that… but it can always use that as an excuse in an overbought situation, to take some pressure off.”
By 9:39 a.m. ET, the major indexes were moving as follows:
DJIA: up 28.81 points (0.13%) . The Dow has gained over 12% this year, despite the uncertainty regarding interest rates and global geopolitical concerns. Strong earnings reports filed by corporations and an expected cut to business taxes by President Donald Trump have been major factors in the trend.
S&P 500: down 0.45 points (0.01%), at 2,495.17. 8 of 11 major indexes were higher than in the last session, led by a 0.45% rise in the telecom services sector.
Nasdaq Composite: down 5.31 points (0,08%), at 6,423.77
All three indexes are set to log gains for the week, with the Dow en route to getting it‘s biggest gains in 2 months.