Dow’s latest Trump bump
CNBC reported that equities surged to all-time highs Wednesday with all the major indexes posting their best day of the year on the back of President Trump’s speech to Congress Tuesday night. The Dow advanced about 300 points with Goldman Sachs contributing the most gains, and closing above 21,000 for the first time. Strategists surmise the president’s positive tone and intent to follow through on campaign promises were the heavy lifters.
Snapchat’s unusual IPO warning
When Snap Inc., the parent company of Snapchat, filed for its initial public offering last month, it included the usual list of risk factors investors might want to consider when investing. However, the Washington Post reports that two of the risks were particularly unusual. One was that the buyers of the IPO shares would get no votes, leaving an extraordinary amount of power to its co-founders. The other cited Snap’s lack of a designated headquarters—Snap has no official central office—as something that could “negatively effect employee morale”.
Wells Fargo predicts more phony accounts
Wells Fargo & Co. is seeking to resolve a bogus-account scandal that shook the company last year and has warned investors that it may still find more victims. The bank has expanded a review into how some of its employees pitched accounts and other products to customers, looking at a broader time frame, and is now refining its methodology to identify any improper sales, Bloomberg reports. Leaders of the San Francisco-based lender have been working since September to restore its reputation and pacify public furor after authorities fined the company $185 million for possibly opening more than 2 million retail bank accounts without customers’ approval.
The dollar rides high
The dollar soared Wednesday as investors bet on an early interest rate rise from the Federal Reserve, according to Yahoo! News. Investors got a boost from the president’s speech to Congress Tuesday night, which promised big-time spending for the U.S. economy in the near future. Traders now put the chances of a rise in the Fed rate later this month at around 80 percent, after two top officials suggested that an early hike was in the cards. Higher interest rates would make holding dollar-denominated assets more attractive, stoking further demand for the greenback.