The US stock index futures rose following a significant two day climb that hasnt happened since January this year. S&P 500 futures expiring this month gained 0.4%, Dow Jones Industrial Average added 0.3%.
Apples futures are trading higher as company is supposed to unveil a new version of the software used in iPhone and iTab series at a conference today.
Tesla lost 1.9% as a report that companys shares may drop to $50 if it doesnt make changes in battery cost and make cars more accessible to common person.
US economy has been bulling the market for four years in a modest but longer lasting pace. The main economic indicators keep on improving little by little. Inflation is slowing and house debt is shrinking, labor market is improving as recent data showed on Friday.
“The current expansion can continue another four to five years,” said Robert Gordon, a professor at Northwestern University in Evanston, Illinois cited by Bloomberg. He is a member of the National Bureau of Economic Research committee that determines when recessions begin and end.
Employment in the worlds largest economy is still weak as it has held down wage increases and inflation. There is still plenty of room for improvement till economy comes back to the level before recession happened.
Ford Motor Co. is one of the automobile manufacturing companies which expects high sales in upcoming years. The company will increase its capacity in order to be able to build 200 000 more cars annually in North America as demand for F-series pickup trucks is expected to rise.
“The sales and marketing guys are obviously very confident, because theyve asked for additional capacity and we’re providing it,” Jim Tetreault, vice president of North America manufacturing, said in a telephone interview for Bloomberg.
Despite recent volatility in the market investors agree this is not unexpected and doesnt mean economy is unstable but slightly weak. Projections for the next 3-4 years are bright with a paced increase in US economy growth.