The S&P 500 hit a new record high, as investors expectations for a rate hike were pushed further into the future. Bobbi Rebell reports.
Economic data fueled a strong rally on Wall Street. The S&P 500 hitting a new all-time high. Falling wholesale prices last month signaled inflation pressures are benign, leading investors to believe that the Fed won't move quickly to raise interest rates. Jobless claims fell last week. And the dollar's fall also sparked buying. The drop in the greenback helps multinationals pump up their foreign sales when translated back into dollars. Global investor Richard Kang has a different view. SOUNDBITE: RICHARD KANG, GLOBAL INVESTOR (ENGLISH) SAYING: "For now, during times of great uncertainty, diversify as much as you can, I believe, and that means move away from a home-biased U.S. portfolio and yes to markets you probably couldn't reach before. That includes mainland China." Shares of Avon spiked as much as twenty percent during Thursday session after an apparently non-existent firm said it had offered to buy the company for three times its market value. After hours earnings highlights included Applied Materials, coming in ahead of forecasts. Symantec issues disappointing guidance, and reported lower revenue. Retailer Nordstrom's earnings, however, missed expectations. Kohl's disappointed investors with sales growth that was much weaker than expected. The department store chain was partly hurt by bad traffic and the West Coast port strike. Shares dropped and pulled down other retailers like Target, Ross and Macy's. ECB president Mario Draghi hinted he's not ready to pare back his money printing program. SOUNDBITE: MARIO DRAGHI, PRESIDENT, EUROPEAN CENTRAL BANK (ENGLISH) SAYING: "After almost seven years of a debilitating sequence of crises, firms and households are very hesitant to take on economic risk. For this reason, quite some time is needed before we can declare success." In Europe, steel shares sparked a rally after the EC opened an anti-dumping probe into Russian and Chinese steel imports.