US stocks surge despite Ukraine vote

Written by admin on 07/30/2019 Categories: 佛山桑拿网

US stocks have bolted higher, brushing off geopolitical concerns after a controversial vote by Crimea to secede from Ukraine and join Russia.

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The Dow Jones Industrial Average jumped 181.55 (1.13 per cent) to 16,247.22.

The broad-based S&P 500 gained 17.70 (0.96 per cent) to 1,858.83, while the tech-rich Nasdaq Composite Index added 34.55 (0.81 per cent) at 4,279.95.

The gains came despite the rise in tensions over Ukraine, with the United States and Europe announcing sanctions against key Russian and Ukraine figures to punish their support for the Crimean breakaway.

Mace Blicksilver, a director at Marblehead Asset Management, said he was surprised by the strength of the rally. But while the Ukraine events of the last 24 hours pointed to continued geopolitical division, there had been no surprises, he said.

Still, the rally likely will not last, Blicksilver warned.

“It doesn’t look like we’re about to start another leg of a bull market here,” he said.

General Motors rose 1.6 per cent despite announcing a recall of 1.8 million more vehicles following an earlier recall of 1.62 million other vehicles. The company also said it would take a $US300 million ($A335.53 million) charge to cover the repairs.

Yahoo, which holds a 24 per cent stake in Alibaba, jumped 4.0 per cent on news that the Chinese e-commerce player intends a US public stock offering.

Vehicle rental firm Hertz shot up 4.8 per cent following a report that it plans a spin-off of its construction equipment rental business.

Under Armour, which makes athletic apparel, announced a two-for-one stock split, sending shares 2.0 per cent higher.

VeriSign, a leader in domain names, took a hit on news that the US National Telecommunications and Information Administration will transition control of domain names to an international body. Citigroup said the shift spells uncertainty for the stock. Shares fell 5.8 per cent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.70 per cent from 2.65 per cent on Friday, while the 30-year increased to 3.63 per cent from 3.59 per cent. Bond prices and yields move inversely.

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