Dow Surges To New Record Closing High On Upbeat Earnings News
16 Julho 2024 - 5:32PM
IH Market News
Extending the upward move seen over the two previous sessions,
stocks moved mostly higher during trading on Tuesday. The Dow led
the charge, surging to a new record closing high.
The Dow jumped 742.76 points or 1.9 percent to 40,954.48, the
S&P 500 climbed 35.98 points or 0.6 percent to a new record
closing high of 5,667.20 and the Nasdaq rose 36.77 points or 0.2
percent to 18,509.34.
The strength on Wall Street partly reflected a positive reaction
to some of the latest earnings news, with Dow component
UnitedHealth (NYSE:UNH) moving sharply higher after reporting
second quarter earnings that exceeded analyst estimates.
Bank of America (NYSE:BAC) also moved notably higher after the
financial giant reported better than expected second quarter
earnings.
Shares of Morgan Stanley (NYSE:MS) also turned positive after
seeing initial weakness after the company reported better than
expected second quarter earnings.
Traders also reacted positively to the latest U.S. economic
news, including a Commerce Department report showing U.S. retail
sales came in unchanged in the month of June.
The Commerce Department said retail sales came in flat in June
after rising by an upwardly revised 0.3 percent in May.
Economists had expected retail sales to come in unchanged
compared to the 0.1 percent uptick originally reported for the
previous month.
Excluding a sharp drop in sales by motor vehicle and parts
dealers, retail sales climbed by 0.4 percent in June after inching
up by 0.1 percent in May. Ex-auto sales were expected to creep up
by 0.1 percent.
“Judging by the positive market reaction to the US retail sales
data, it appears that investors are focusing on the economic
strength for now, while also maintaining a strong belief that
monetary policy starts to ease after the summer,” said Dan
Coatsworth, investment analyst at AJ Bell.
The Labor Department also released a report showing import
prices in the U.S. were unexpectedly flat in the month of June.
The report said import prices were unchanged in June after
dipping by a revised 0.2 percent in May. Economists had expected
import prices to rise by 0.2 percent compared to the 0.4 percent
decrease originally reported for the previous month.
Meanwhile, the Labor Department said export prices declined by
0.5 percent in June after falling by a revised 0.7 percent in
May.
Export prices were expected to edge down by 0.1 percent compared
to the 0.6 percent decrease originally reported for the previous
month.
Sector News
Housing stocks showed a substantial move to the upside on the
day, with the Philadelphia Housing Sector Index spiking by 5.3
percent to a record closing high.
Optimism about the outlook for interest rates contributed to the
strength in the sector despite a report from the National
Association of Home Builders showing an unexpected dip in
homebuilder confidence in the month of July.
Gold stocks are also saw significant strength amid a sharp
increase by the price of the precious metal, driving the NYSE Arca
Gold Bugs Index up by 3.4 percent. The index reached a more than
two-year closing high.
Considerable strength was also visible among airline stocks, as
reflected by the 3.3 percent surge by the NYSE Arca Airline
Index.
Banking, biotechnology and telecom stocks also saw notable
strength on the day, moving higher along with most of the other
major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance during trading on Tuesday.
Japan’s Nikkei 225 Index rose by 0.2 percent and China’s Shanghai
Composite Index inched up by 0.1 percent, while Hong Kong’s Hang
Seng Index slumped by 1.6 percent.
Meanwhile, the major European markets all moved to the downside
on the day. While the French CAC 40 Index slid by 0.7 percent, the
German DAX Index fell by 0.4 percent and the U.K.’s FTSE 100 Index
dipped by 0.2 percent.
In the bond market, treasuries rebounded following the pullback
seen in the previous session. As a result, the yield on the
benchmark ten-year note, which moves opposite of its price, fell
6.2 basis points to 4.167 percent.
Looking Ahead
Trading on Wednesday may be impacted by reaction to reports on
industrial production and housing starts as well as the Federal
Reserve’s Beige Book.
SOURCE: RTTNEWS
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