Wall Street remains high despite weaker-than-expected data

<p>US stocks remained flat at record high level today.</p>

US stocks remained flat this morning (November 26th) ahead of the Thanksgiving holiday, despite the release of weaker-than-expected economic data from the US government.

The Dow Jones Industrial Average fell 0.1 per cent, to 17806 at 10:37 ET, while the S&P 500 index added one point to 2068 and the Nasdaq Composite Index gained 0.2 per cent to 4770.

Jobless claims unexpectedly rose by 21,000 in the latest week, reaching 312,000 for the first time since early September. Consumer spending in the world's largest economy rose 0.2 per cent in October from the prior month, while personal income rose 0.2 per cent.

And while consumer sentiment rose to its highest level in more than seven years, it was down slightly from a preliminary reading. However, new-home sales rose slightly in October after sharp downward revisions to prior months levels.

"This isn't enough to derail the rally we've been on, because while markets are fairly valued, when you consider the alternatives equities are still the best asset," Matthew Keator, partner in wealth management firm the Keator Group, told Reuters.

Wall Street shares have rallied in recent weeks on a string of improving economic data in the US. It emerged this week that the country's economy grew at a pace of 3.9 per cent in the third quarter, higher than the initial estimate of 3.5 per cent.

The Conference Board Leading Economic Index (LEI), an index of US leading indicators, increased by 0.9 per cent in October, following a 0.7 per cent increase in September - beating forecasts.

It was also revealed that US inflation was stable, with consumer prices unchanged in October, as low gasoline costs continued to keep inflation at bay. "The U.S. is certainly the star of the recovery," Chris Gaffney, senior market strategist at EverBank Wealth Management, told the Wall Street Journal. "Right now the U.S. consumer is the driver of the global economy."

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.