Thursday is also the last trading day of October. Overall, the Dow and S & P 500 rose 0.3% and 0.5% in October, while the NASDAQ rose 0.6% in October.
Among technology stocks, Apple Rose 2.26%, its earnings exceeded expectations, with earnings per share of $303 and revenue of $64 billion in the third quarter, better than the average expected earnings per share of $284 and revenue of $62.99 billion of analysts surveyed by refinitiv respectively.
Facebook rose 1.81% with a third quarter earnings per share of $2.12, surpassing refinitiv analysts forecast of $1.91, while Facebooks average revenue per user was also stronger than expected.
On Wednesday, local time, the Federal Reserve announced the third interest rate cut in the year. The Federal Reserve policy statement deleted the key statement of take appropriate action to maintain economic expansion and released the signal of suspending monetary policy easing. At the same time, Federal Reserve Chairman Powell indicated that the central bank would not consider raising interest rates until inflation rose significantly.
Tom Lee, founder and head of research at fundstratglobaladvisors, believes that this is the right strategy, and that the pause has created a good environment for risky assets (by the end of the year). He believes that the Federal Reserve has done better this year (compared with last year) in understanding market risks.
However, affected by the Federal Reserves announcement of interest rate cut, the US bond yield fell in an all-round way, and the trend of banking stocks was under pressure. On Thursday, the benchmark 10-year Treasury yield fell about 11 basis points to 1.68%. Citigroup fell 1.52%, Bank of America fell 1.1% and JPMorgan fell 0.6%. Regional spdrs & P bank ETF (kre) fell 1.5%.
The U.S. House of Representatives passed a resolution on President Trumps impeachment investigation procedure on October 31, with 232 votes in favor and 196 against, Xinhua reported.
This is the first time the house of Representatives has held a formal vote on the impeachment investigation. The result of the vote was almost entirely in accordance with the party line. No Republican Representatives voted for the resolution, and two of the Democratic Representatives voted against it.
In response, some Wall Street analysts pointed out that the efforts of Democrats to impeach the president will not affect the stock market as they said, but if impeachment begins to affect their re-election, it may affect the stock market. More important to the market, analysts say, is whether trump can reach a trade deal with China.
Dan Clifton, head of policy research at strategas research, said impeachment should not interfere with a trade agreement and hoped to reach a first phase agreement by the end of the year. Peter boockvar, chief investment officer of Bleakley Advisory Group, thinks impeachment will not affect negotiations. He thinks the market is concerned about whether it will affect the 2020 election.
A spokesman for the Ministry of Commerce said in a statement on October 31 that the economic and trade teams of China and the United States have maintained close communication and that the consultation is progressing smoothly. The two sides will continue to promote consultation and other work in accordance with the original plan. The two leaders will call again on Friday. White House spokesman Hogan Gidley said Wednesday that the U.S. government is still looking forward to finalizing the first phase of the trade agreement with China in November.
Source: responsible editor of 21st century economic report: Wang Honggui