After the stock markets in Europe have reacted with relief to the statement of the Russian President Vladimir Putin for the Crimean crisis on Tuesday, the Wall Street indexes also finished on the green path.
The main US indexes grew for the second day, as the S&P 500 is close to its new record value, continuing the profitable session from yesterday. The positive economy data from USA and the statements of the Russian President Vladimir Putin affected the investor sentiment and supported the trade.
The profits were really widespread, but the biggest winners of the day trading session belong are again the cyclical stocks. The index Dow Jones grew with 0.6% to 16,336 points. The broader S&P 500 rose with 0.7% to 1,872 points, while the Nasdaq index ended the session with increase of 1.3% to 4,333 points.
However, despite the gains on Tuesday there are concerns regarding the future developments in Crimea. The Ukrainian policeman was wounded in a firefight on the outskirts of Simferopol on Tuesday, although it is not yet entirely clear who stays behind the incident. Moreover, the Prime Minister of Ukraine Arseniy Yatsenyuk said that the conflict between Russia and Ukraine over Crimea now enters into the military phase.
The investors expect the closing of the two-day Fed meeting, which will give information about the changes of the monetary policy and QE program. The monetary policy till now support the market and customer spendings. The Exchange participants pay particular attention to the notifications for the change in the exchange rate of the Central Bank.
The consumer prices in USA rose with 0.1% in February, in line with the expectations, after a similar growth in January. The core inflation for February slowed to 1.1% yoy, compared to 1.6% in January, according to the official information from the US Labor Department.
The Ministry of Trade announced that the number of permits issued for Real Estates Building in February fell with 0.2% from January and 6.4% yoy. Although the revival in building permits gave hope that the housing market will emerge from the unfavorable situation.
Among the biggest winners on Wall Street was Microsoft, which shares grew with 4%. The software company will present its version of Microsoft Office for the Apple iPad devices. After that news the shares of the company grew to 40 USD.
The shares of Hewlett-Packard also rose with 3.4%, after analysts at Barclays raised its assessment from “equal weight” to “overweight”.
Hertz shares grew with 0.7%, as the company announced that wants to concentrate on the business of car rental and therefore sells the unit for rent equipment for 2.5 billion USD. The move is expected to reduce the debt of the company and in addition to finance the redemption of shares in the volume of 1 billion USD.
Among the losers were the shares of GameStop with a decrease of 4%. The largest retailer in the world Wal-Mart entered into the business used video games, and this step could jeopardize the business based on GameStop.