Investors Send S&P 500 To New Record High

Investors were feeling bullish after the upbeat global economic forecast from the World Bank.
 
The stock market’s advance continued on Wednesday, after investors saw the global economic forecast from the World Bank. The World Bank expects the global economy to expand from 2.4 percent in 2013 to 3.2 percent this year, stabilizing at 3.4 percent in 2015 and 3.5 percent in 2016, with much of the initial acceleration reflecting stronger growth in high-income economies. The report indicated that America’s GDP is projected to grow from a 1.8 percent rate of annual expansion in 2013 to 2.8 percent expansion this year. In 2015, America’s GDP is expected to grow by 2.9 percent, with anticipated GDP expansion by 3.0 percent in 2016.
 
The Dow Jones Industrial Average (DIA) picked up 108 points to finish Wednesday’s trading session at 16,481 for a 0.66 percent advance. The S&P 500 (SPY) rose 0.52 percent to finish at a new record-high closing level of 1,848.38, after hitting a record intraday high of 1,850.84.
 
The Nasdaq 100 (QQQ) surged 0.82 percent to finish at 3,609. The Russell 2000 (IWM) climbed 0.68 percent to end the day at a record-high closing level of 1,171.35, after hitting a record intraday high of 1,171.96.
 
In other major markets, oil (USO) jumped 2.21 percent to close at $33.77.
 
On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced 37 cents (0.35 percent) to $105.97/bbl. (BNO).
 
February gold futures advanced $3.70 (0.30 percent) to $1,242.00 per ounce (GLD).
 
Transports were zooming past the moon on Wednesday, as the Dow Jones Transportation Average climbed 0.64 percent to a record-high closing level of 7,503.83 after hitting a record intraday high of 7,508.74 (IYT).
 
In Japan, the exchange rate for the yen continued to be the dominant factor in stock market activity. Japanese stocks made enormous gains, as the yen weakened to 104.46 per dollar before Wednesday’s closing bell in Tokyo. A weaker yen causes Japanese exports to be more competitively priced in foreign markets (FXY). Panasonic shares skyrocketed 3.71 percent on the Tokyo Stock Exchange. The Nikkei 225 Stock Average soared 2.50 percent to 15,808 (EWJ).
 
Stocks declined in mainland China as the result of a slowdown in credit growth, with December’s new loans totaling only 482.5 billion yuan – an amount which was 15 percent short of estimates. The Shanghai Composite Index declined 0.17 percent to 2,023 (FXI). Hong Kong’s Hang Seng Index advanced 0.49 percent to 22,902 (EWH).
 
In Europe, stocks soared as a result of the upbeat global economic forecast from the World Bank. The report indicated that after two years of contraction, the Eurozone GDP is expected to expand by 1.1 percent this year, increasing to 1.4 percent growth in 2015 and 1.5 percent expansion in 2016. A One-Way Bet for Eurozone Equities
 
The Euro STOXX 50 Index jumped 1.58 percent to 3,168 on Wednesday – climbing further above its 50-day moving average of 3,046. Its Relative Strength Index is 67.49 (FEZ).
 
Technical indicators revealed that the S&P 500 climbed further above its 50-day moving average of 1,804 after advancing 0.52 percent to finish Wednesday’s trading session at a new record-high closing level of 1,848.38. Its Relative Strength Index climbed from 58.39 to 61.69. The MACD is climbing back toward the signal line, which would suggest that the S&P could continue to advance during the immediate future.

On Wednesday, six sectors advanced and three sectors declined.  The technology sector made the biggest advance, climbing 1.21 percent.  The energy sector made the most significant decline, retreating 0.29 percent.
 
Consumer Discretionary (XLY):  +0.24%
 
Technology:  (XLK):  +1.21%
 
Industrials (XLI):  +0.71%
 
Materials: (XLB):  +0.61%
 
Energy (XLE):  -0.29%
 
Financials: (XLF):  +1.19%
 
Utilities (XLU):  -0.18%
 
Health Care: (XLV):  -0.09%
 
Consumer Staples (XLP):  +0.02%
 
Bottom line:  An upbeat global economic forecast from the World Bank kept investors feeling bullish on Wednesday, as the S&P 500 Index reached new record intraday and closing high levels.

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