The Dow Jones Industrial Average ended the day higher in a listless day of trading on the back of the Columbus Day which meant that the trading during the session was on low volumes as the credit markets remained closed today. It is imperative to state that the Dow Jones Industrial Average have been in a strong uptrend over the last week and have started the month on a strong note as traders expect the federal reserve to defer its interest rate hike to some time next year which is being seen as a hugely bullish sign for equity prices in the near term.
One of the biggest newsmaker for the day was the announcement that Dell would be acquiring data storage giant EMC. It was reported today that Dell is buying a data storage company EMC for $67 billion in a huge bet on a segment of technology that has proven to be more profitable than the slumping personal computer market and was seen as a huge positive by investors on the street. According to analysts, the acquisition announced by Dell today marks its latest attempt to lessen its dependence on the PC industry that it helped pioneer as demand for desktop and laptop machines weaken amid growing popularity of smartphones and tablets which is a huge negative for the company. Shares of EMC ended higher by close to 2 percent during the trading session today.
Crude prices plummeted by close to 5 percent during the trading session today on the back of reports that the OPEC continues to produce at record highs which is huge negative for the commodity in the near term. Traders would be closely watching the release retail and inflation reports that would be released over the coming days which would provide an insight into the inherent strength of the US economy.