United States stocks open higher on Yellen comments, energy strength

Gwen Vasquez
July 15, 2017

Investor cheered Yellen's view of gradual increase in rates on Wednesday, with world shares hitting their fourth all-time high in less than a month on Thursday.

TOKYO: Asian shares up more than 1 per cent with sentiment getting another boost from China's upbeat data on exports and imports for June, the latest sign that global trade is finding some real traction again.

In prepared remarks before the House Financial Services Committee on Wednesday, Fed Chair Janet Yellen acknowledged growing concerns over weak inflation.

A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) fell 5.4% to 10.26. Despite the indexes' gains, there were three down stocks for every two higher on the Nasdaq.

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Banks and other financials stocks posted the largest gains. But analysts said investors had wanted to see even better results and hear a rosier outlook from executives. "There's been just a little bit of a sell on the news, but afterward, you buy on the idea of a good quarter", said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

The blue-chip CSI300 index rose 0.8 per cent, to 3,686.92 points, while the Shanghai Composite Index gained 0.6 per cent to 3,218.16 points. The market expects earnings per share growth of about 7 percent from companies in the S&P 500. "It is a resilient market, impervious to whatever comes out of Washington".

Advancing issues outnumbered declining ones on the NYSE by a 2.54-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored advancers. That compares with the 6.7 billion daily average for the past 20 trading days, according to Thomson Reuters data.

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