Sign in Subscribe
Computer industry

Market Rally Continues as Government Bond Purchases Boost Confidence

Strategic Insights

— 2 min read

The market rally continued on Tuesday, February 16th, with share prices closing broadly higher, driven by the Ministry of Finance's plan to resume government bond purchases and the yen's fall against the dollar. The Nikkei 225 closed up 177.92 points at 14,232.64, while the Dow Jones industrial average closed down 88.57 points at 9,274.89, and the New York Stock Exchange composite index fell 8.28 points to 581.46. The rally was largely fueled by the high-technology sector, with trading resumes on Wall Street after a long holiday weekend.

Key Takeaways:

  • The Ministry of Finance's plan to resume government bond purchases boosted investor confidence, leading to a rally in share prices.
  • The Nikkei 225 closed up 177.92 points at 14,232.64, while the Dow Jones industrial average closed down 88.57 points at 9,274.89.
  • The high-technology sector led the gains, with stock valuations on investors' minds as trading resumes on Wall Street.
  • The New York Stock Exchange composite index fell 8.28 points to 581.46, driven by moderate trading and declines leading advances by better than 2-1.
  • Credit Suisse Asset Management agreed to acquire Warburg Pincus Asset Management for $650 million, forming a new firm with over $230 billion in global assets under management.
  • American Airlines strengthened its relationship with Spain's Iberia Airlines by taking a one-percent stake in the company, part of Iberia's privatization program.
  • Republic Industries agreed to buy five auto dealerships with total annualized revenue of $625 million, expanding its presence in the industry.
  • Boston Scientific will cut about 2,000 jobs as part of a reorganization following the acquisition of Schneider Worldwide, estimating restructuring costs at $62 million.
  • Mutual fund assets managed by the banking industry have increased from $112.1 billion in 1994 to $835.6 billion today, according to the American Banker.
  • A new survey finds young American adults are far more savings-conscious than their elders, with 64 percent saving for retirement by the age of 23.

Statistics:

  • The Nikkei 225 closed up 177.92 points at 14,232.64, representing a 1.26% gain.
  • The Dow Jones industrial average closed down 88.57 points at 9,274.89, representing a 0.95% decline.
  • The New York Stock Exchange composite index fell 8.28 points to 581.46, driven by moderate trading and declines leading advances by better than 2-1.
  • Over 691 million shares changed hands on the New York Stock Exchange, with the Nasdaq composite index plunging 83.66 points to 2321.89.
  • The 30-year Treasury bond closed lower at 97 15/32, down from late Thursday's 99 6/32, with a yield of 5.42%.
  • The dollar fell to 114.24 Japanese yen from late Thursday's 114.68 yen, while the euro rose to $1.1307 from late Thursday's $1.228.

Sources:

  • COMTEX (http://www.comtexnews.com)
  • American Banker
  • Thomson Financial Services
  • Roper Starch Worldwide
  • Lincoln Financial Group
  • Money magazine
  • Credit Suisse Group
  • Warburg Pincus Asset Management
  • Republic Industries
  • Boston Scientific
  • U.S. Industries
  • Harrisburg, Pennsylvania

Read more