Last week, equity trading provided another opportunity to admire the optimism recently present in the markets.
The week kicked off with the NASDAQ composite index topping over 4,000 points.
Market belief that the Fed’s market supporting actions will continue was presented too – the increase of bidding over bonds offered by the U.S. Treasury led Monday’s Bids-to-Cover ratio up to 3.54, an impressive jump from October’s 3.09.
Moreover, the interim deal concluded between the P5+1 and Iran over Iran’s nuclear program helped nudge oil prices downwards, which fueled corporations’ expectations for cheaper forthcoming energy prices.
Tuesday, provided an opportunity for the NASDAQ to really shine as it passed the 4K mark again, and closed the trading day there, for the first time in 13 years.
The positive trading day was backed by U.S. Building Permit statistics, which indicated that 1,034K annualized new permits were granted in October.
On the one hand, this is the highest figure since January 2008.
On the other hand, it could be a latent response to the recent Federal Government Shutdown, so it will be interesting to re-examine those figures in November.
The day also saw the Conference Board’s Consumer Confidence Index losing two points to a level of 70.4.
The same positive momentum continued on Wednesday as Initial Jobless Claims dropped by 10K versus the previous week.