The markets popped to new highs today as the government officially became re-open for business, at least for another three weeks. The Dow 30 rallied 143 on the news, while the S&P 500 added 22, and Nasdaq was higher by 71, both hitting new highs in the process.
First Energy (FE ) was your leader in the S&P 500 today as news broke that investors would add $2.5 billion in equity into the company. The company says they will use the investment to contribute to it's pension fund, reduce debt and fund further investments. According to analysts the equity will fund the company and their growth through 2020. Shares were higher by over 13%.
Wynn Resorts (WYNN ) was also a big gainer today as the casino operator reported earnings and revenue that beat Wall Street's expectations. Strong results from their Macau casinos were the reason for the beat. Las Vegas properties' sales fell 1.6%. Shares were higher by 7% today, hitting new highs. MGM (MGM ) and Las Vegas Sands (LVS ) were also hit new highs on the news.
Shares of General Electric (GE ) fell to another new low today after a negative outlook and downgrade by Bank of America (BAC ). the company downgraded the company to neutral on lower earnings estimates, a zero equity value on GE capital and lower value to other GE companies. The analysts said that they feel the market will not pay up for the company or any options to break it up. Shares have lost over 15% in just the last 7 trading days.
Finally, investors got a look at a note that Goldman Sachs (GS ) issued to it's highest net worth clients today. In the note the company said that the market is not in a bubble and the bull market will likely continue. They recommended that clients stay invested in equities despite the high valuations and warnings from others that we are in a bubble. They did protect themselves from this prediction though by stating that "This recommendation comes with a note of caution. We have to remain vigilant, brace ourselves for continued cyber attacks and terrorism, and acknowledge that growing geopolitical tensions could result in an ugly and costly war."
