The S&P 500 stock index marked a six-year rally on Monday as it rose above the 2,000 level. The gain followed a report showing durable-goods orders' sharpest ever increase and the surprising rise of consumer confidence.
The rally is still seen as benefiting wealthier Americans, as small wage increases have left most citizens unable to invest much in their retirement account, despite the fact that the unemployment rate has declined from December 2009's high of 10 percent to a low of 6.1 percent in June of this year, reports Reuters.
On Tuesday, the S&P 500 climbed 0.2 percent to 2,002.08 in New York after reaching an intraday record of 2,005.04. Trading in S&P 500 stocks was under the 30-day average by 29 percent, according to BusinessWeek.
Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview with Bloomberg, "There's not a lot of direction in the market so far. The 2,000 number got a lot of attention, but let's get back to basics and see how the economy is doing."
The S&P 500 has gained for the past three weeks and the value of American equities has increased by over $1 trillion since a two-month low on Aug. 7.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.