Factory Data, Fed Reactions Lead to New Market Highs
Investors weighed both factory output data and analysis of Federal Reserve Official Janet Yellen‘s comments on quantitative easing yesterday as they confidently pushed stocks up higher for the day. The S&P 500 gained for the sixth straight week, marking the longest winning streak since February, and the Dow Jones Industrial Average hit an all-time high. According to John Fox, director of research at Fenimore Asset Management in Cobleskill, New York, investors interpreted Yellen’s remarks as meaning “interest rates are going to remain low for a while, which is a positive environment for equities.” He continued, “The combination of earnings growth and expanded PE due to investors feeling better about things just continues to move the market higher.”
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