New York (AFP)
The New York Stock Exchange ended higher for the fifth straight session on Tuesday, quietly reaching new records as the horizon for the end of the year looks clear.
Its flagship index, the Dow Jones Industrial Average, gained 0.11% to close at 28,267.16 points.
The highly technological Nasdaq appreciated 0.10% to finish at 8,823.36 points and the broad S&P 500 index gained 0.03% to finish at 3,192.52 points.
"The fog has completely dissipated," observes Maris Ogg, portfolio manager for Tower Bridge Advisors.
After the trade agreement between the United States and China and the legislative elections in the United Kingdom, "we now have more certainties on the trade front and on Brexit," she said.
"We have again a curve where long-term rates are higher than short-term rates and we have accommodative monetary policies which have allowed several economies to revive," she adds.
In addition, companies' results should easily improve in 2020 given the virtual stagnation of their profits this year.
Admittedly, the stock market indices have already climbed well since the start of the year, by 21% for the Dow Jones or 33% for the Nasdaq.
But faced with yields of 2% or less on the bond market, "the equity market clearly remains a destination of choice for investors," said Ms. Ogg.
The indices were also supported on Tuesday by encouraging data on the US economy.
On the real estate side, housing starts in the United States increased more than expected in November (+ 3.2%) while building permits reached a new peak since May 2007.
Industrial production in the United States also rose more than expected in November (+ 1.1%), with the return to assembly lines of General Motors employees after a long five-week strike.
On the bond market, the 10-year Treasury bill rate rose a little around 9:15 p.m. GMT, at 1.878% against 1.871% on Monday at the close.
© 2019 AFP