US Markets: Broader indices in the United States traded on a mixed note - particularly, the S&P 500 index traded 10.27 points or 0.31 per cent higher at 3,291.33, Dow Jones Industrial Average Index contracted by 27.97 points or 0.10 per cent lower at 27,119.73, and the technology benchmark index Nasdaq Composite traded higher at 10,832.23, up by 53.43 points or 0.50 per cent against the previous day close (at the time of writing, before the US market close at 12:10 PM ET).
US Market News: The Wall Street opened in the green as the US Federal Reserve chairman Jerome Powell would testify in front of Congress. The existing home sales in the US increased by 2.4 percent month on month in August 2020. Among the gaining stocks, Comcast was up by around 2.8 percent after Trian Fund Management took a stake in CNBC parent and NBCUniversal. Amazon led the Nasdaq gain as it was up by around 2.4 percent. Hertz was up by close to 0.8 percent after the reports that it is looking for bankruptcy loans. Among the decliners, Tesla plunged by around 6.4 percent ahead of the Battery Day event. AutoZone was down by close to 1.1 percent, although the company reported earnings per share of USD 30.93. Walmart slipped by nearly 0.1 percent after the company partnered to provide credit to third party merchants with Goldman Sachs.
US Stocks Performance*
European News: The UK and European markets traded in the green as the UK puts new guidelines to restrain covid-19 cases. The Bank of England highlighted that it would stop buying commercial paper from companies from March 2021. Meanwhile, the CBI industrial monthly order book balance declined to -48 in September 2020 from -44 in August 2020. Among the gaining stocks, AG Barr and Kingfisher were up by around 15.6 percent and 9.5 percent, respectively, after both the companies reported profit in the first half of the year. TUI gained close to 0.7 percent after the company highlighted that it had cut the capacity for the winter season and 8,000 people may lose jobs. Among the decliners, Beazley was down by close to 13.2 percent after the company expected higher claims related to covid-19. Hikma fell by around 4.9 percent after it provided an update on Advair Diskus generic drug. Shares of Whitbread were down by about 2.7 percent after the reports that it may cut 6,000 jobs.
European Index Performance*:
FTSE 100 Index One Year Performance (as on 22 September 2020)
1 Year FTSE 100 Chart (Source: Refinitiv, Thomson Reuters)
Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group Plc (LLOY); International Consolidated Airlines Group SA (IAG); BP Plc (BP.).
Top 3 Sectors traded in green*: Energy (+3.00%), Consumer Non-Cyclicals (+1.53%) and Utilities (+1.05%).
Top 3 Sectors traded in red*: Industrials (-0.21%), Real Estate (-0.20%) and Healthcare (-0.19%).
London Stock Exchange: Stocks Performance (at the time of writing)
Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $41.62/barrel and $39.67/barrel, respectively.
Gold Price*: Gold price was quoting at US$1,909.10 per ounce, down by 0.08% against the prior day closing.
Currency Rates*: GBP to USD: 1.2735; EUR to GBP: 0.9199.
Bond Yields*: US 10-Year Treasury yield: 0.666%; UK 10-Year Government Bond yield: 0.197%.
* At the time of writing
High yielding dividend stocks may be a good bet amid lower Government Bond yield regime.
With yields on UK government bonds are at a record low, stocks with higher dividend yield (%) will be back in investor’s attention.
Dividend stocks usually do not get into a free fall and outperform most of the time.
Dividend stocks are easy to get cash flow from your stock investments without liquidating anything. Further, you can use dividends to buy additional units of stock. And, if you reinvest dividends, you can significantly increase your long-term return from your investments because of the power of compounding.