On Friday December 6th the S&P 500 index reached a record high. The index closed on 6,090.27 which was up by 15.16 points from the previous day’s closing. The previous closing was 6,075.11. So a 0.25% increase in the index was seen in a single day.
Just a year ago the index was around 4,570. Over the year the index has climbed a whopping 32.27% reaching the maximum value of 6,099.97 last Friday. There are various factors driving the S&P index to all time high value.
Lululemon Athletica Inc. performed the best during the last closing day with a gain of 54.79 that is a 15.89 increase in a single day. This growth spurt came after the sportswear maker announced a better full year forecast. For the second top performer we have Hewlett Packard with a 10.62% increase in share price.
Ulta Beauty Inc. was third on the list as they announced a higher profit forecast for the year. Their stocks gained 8.99%. Super Micro Computer Inc. came back in the fold after the positive feedback from the special committee. Moreover they won an extension for Nasdaq giving the stock an edge. The stock increased by 6.78% on the last closing day.
On the contrary we have UnitedHealth Group Inc. as the bottom performer. The company lost its value as the UnitedHealth’s insurance CEO has recently passed away in a fatal shooting. The killer hasn’t been caught and brought the company in the crosshair of public discourses. The infamous insurance system of American healthcare contributed to the loss of value for UnitedHealth.
The awaited November job data came with a positive outlook. Employers were able to add more jobs to the market compared to the expectation from the previous month. The Bureau of Labor Statistics unveiled the report of Friday that payrolls rose by 227,000 while the forecast was for 220,000. This increase also fueled the growth of S&P 500.
A stronger job market gives confidence to the economy as it indicates that the US might be able to avoid an economic downturn. As the unemployment rate lessens, the Fed will feel more at ease to cut back on interest rates. This bodes well for the stock market overall.