BUSINESS NEWS MAY 25TH, 2016
U.S. stocks are suddenly back in rally mode, as stocks rose again Wednesday after their best day since mid-March as a continued rise in oil prices and a continued strength in the housing market give investors hope that the economy and market can withstand a coming rate hike.A day after rallying 213 points, or 1.2% -- its best single-day percentage gain since March 11 -- the Dow Jones industrial average climbed 145 points, or 0.8%.The broader Standard & poor's 500 stock index ended 0.7% higher and the Nasdaq composite gained 0.7%.
FED THINKS DOLLAR STRENGTHENING
After climbing last year, the dollar fell again at the beginning of this one. On May 2, the ICE dollar futures index hit a record low. However, positive economics have brought the dollar up in recent weeks; the currency showed a 3% climb, increasing the possibility of an interest rate hike in June. Ed Yardeni, chief investment strategist at Yardeni Research, thinks that the dollar will rise to new heights this year. However, a stronger dollar does not necessarily equate to positive news for foreign countries. Mexico, Turkey and Thailand will all have to raise more money in order to pay off their debt.
VERIZON STOCK DROPPING
Verizon’s labor problem is hurting it massively. A month ago, nearly 40,000 workers went on strike, and the cell service company has been hurting ever since. Investors have “hung up” on the company and its stock is down more than 5%, the worst out of any of its competitors. The Communication Workers of America union has been active, pointing out that banks such as Wells Fargo have cut revenue expectations for Verizon, showing that Wall Street has abandoned the company. Verizon CEO Lowell McAdam said that the strike is hurting the company, as they are not doing installations at the same rate as before.
PHOTOS CAN DETERMINE ECON POLICY
A San Francisco company called Premise thrives on data collection. The crowdsourcing based company’s goal is to help NGO’s and the government get a clearer picture of the economy. One example of this comes from the Philippines where government charges a sin tax on alcohol and cigarettes in order to pay for its Universal Health Care program. However, they are unable to determine which shops charge the tax and which ones don’t. Lucena Olarte is one of the “investigators” for premise. She goes around and takes pictures of cigarettes to verify that the sin tax is charged.