S&P 500 hit two-year high
World markets went on rising on Friday. S&P 500 climbed 5.5% during the week, the 2-year high. The macroeconomic data was neutral on Friday. Microsoft good earnings report boosted the stock prices. Its stocks rose 2.5% and Procter & Gamble (+2,3%). Amazon stocks tumbled 8.3%, but it could not drag down the US stock market. However, the activity of market participants was considerably low. The trading volume on US exchanges was 5.3 billion stocks, 35% lower than the October average.
Currently, 205 companies listed in S&P 500 announced their earnings reports. The 69.8% of companies’ earnings outperformed the tentative forecasts. On average such a surplus was observed in only 63% of the companies since 1994. Profit forecasts overshot 59.8%. This is less than the average level since 2002, which is equal to 61% of the companies. Today Pending Home Sales in September are to be released at 14-00 СЕТ in the United States. The outlook is positive. It should be noted that S&P 500 upped 4.7% on the quarter-average since March 2009 to June 2014. This is almost five times higher than the quarterly average increase in GDP (+0.9%) for the same period. The gap in the growth rate of the American GDP and the US stock market is now the largest since 1947. S&P 500 has been rising for 68 consecutive months for the first time since 1938. In our opinion, all that may indicate that US exchanges may slump down again.