Pages

Wednesday 21 March 2012

US Stocks rise on announcements by Big Companies

Apple announced dividends and share repurchase of $10 billion and it rose by 2%.

UPS rose by 4% on announcing that it will buy TNT Express.

U.S Steel rose by 7% due to several manufacturers announced price hikes.

Collectively these announcements resulted in S&P500 rise by 9 points, NCI to rise by 30 points and DJIA to shoot up 15 points.

These dissemination of information readily reflects in the stock prices supporting the argument that markets are efficient. A lot investors have earned alpha returns based on stocks over/under valued which clearly states that markets are inefficient. It is a long debate. Semi strong form of market efficiency does prevail in developed markets where technical analysis does not breed returns (normally) but fundamental analysis can.

No comments:

Post a Comment