U.S. equity markets closed near the highs of the session after drugmakers reported progress in developing a COVID-19 vaccine and as Congress continued to work toward another economic relief package. The Dow Jones Industrial Average gained 370 points, or 1.4 percent, while the S&P 500 and the Nasdaq Composite rose 0.64 percent and 0.52 percent, respectively. The Nasdaq netted its 31st record-high close of the year and ended just shy of its first close above 11,000. Investors shrugged off dour data on jobs. The ADP report for July showed private employers added 167,000 jobs in July, well short of the 1.5 million that analysts surveyed by Reifintiiv were anticipating. The ADP reading sets the stage for the July jobs report, which is due out on Friday morning. Looking at stocks, Johnson & Johnson reached a more than $1 billion deal with the U.S. government to supply 100 million doses of its Janssen Pharmaceutical Companies’ experimental COVID-19 vaccine for use in the U.S. once regulators approve. A Phase 1 clinical trial of drug maker Novavax, Inc.’s experimental COVID-19 vaccine was generally well-tolerated and induced antibodies in 100 percent of participants. And Moderna noted it has already received multiple orders for its experimental COVID-19 vaccine which will be priced between $32 to $37 for small doses. On the deal front, telehealth marketer Teladoc Inc. has agreed to an $18.5 billion purchase of Livongo Health Inc.; it plans to pay $11.33 cash and 0.592 Teladoc shares for each Livongo share. Looking at earnings, Dow component Walt Disney Co. reported revenue plunged 42 percent in the three months through June as COVID-19 shuttered its theme parks and postponed movie releases. While sales fell short of Wall Street estimates, profit outpaced expectations. CVS Health Corp. reported quarterly profit spiked 54 percent from a year ago as COVID-19 caused people to put off elective medical procedures, helping reduce the company’s medical benefit ratio, or the amount of premium revenue spent on medical care and services. Beyond Meat revenue surged 69 percent as surging retail growth helped offset a shock to the company’s foodservice sales. Still, shares were under pressure as climbing costs led to a deeper loss. Wynn Resorts reported a 95 percent drop in revenue as COVID-19 kept gamblers away from its Las Vegas and Macau casinos. Looking at commodities, gold spiked $29.90 to a record $2,031 an ounce, another new record, while West Texas Intermediate crude oil jumped $0.49 to $42.19 a barrel and settled at the highest level since March. U.S. Treasurys were under modest selling pressure, causing the yield on the 10-year note to climb to 0.541 percent. In Europe, Britain’s FTSE was leading the advance, up 1.14 percent, after U.K. factory output grew at its fastest pace since November 2017. Meanwhile, France’s CAC and Germany’s DAX were higher by 0.9 percent and 0.47 percent, respectively. Asian markets finished mixed, with Hong Kong’s Hang Seng adding 0.62 percent and China’s Shanghai Composite gaining 0.17 percent while Japan’s Nikkei slipped 0.26 percent.
Tech stocks led the charge on Friday, pushing all three of the major averages higher after stellar earnings from Apple, Facebook, Amazon and Google. The tech-heavy Nasdaq Composite, snapped a two-week losing streak, rising 1.5 percent, while the S&P 500 climbed 0.77 percent. The Dow Jones Industrial Average added 115 points, or 0.44 percent. All three indexes notched their fourth straight month of gains. Looking at stocks, Apple Inc. announced a 4-for-1 stock split after reporting record revenue and earnings growth for the three months through June. The tech giant’s revenue rose 11 percent during the quarter while earnings grew by 18 percent. CEO Tim Cook also told FOX Business he is confident in a “strong bounce back” for the U.S. economy. Apple shares settled at an all-time as the company approaches a $2 trillion value. Amazon Inc. reported quarterly revenue surged 40 percent year-over-year as the COVID-19 pandemic boosted its online shopping and cloud services businesses. The e-commerce behemoth’s profit doubled to a record $5.2 billion. Google-parent Alphabet Inc. beat Wall Street expectations on both the top and bottom lines, but advertising revenue fell 8 percent from a year ago, driven by weakness in its search business. Facebook Inc. revenue grew 11 percent from a year ago as user-engagement increased while Americans hunkered down at home to ride out the COVID-19 pandemic. Despite the better-than-expected results, some analysts made note of the slowdown in revenue growth, which had averaged gains of almost 25 percent over the previous four quarters. Elsewhere on the earnings front, Dow component Caterpillar Inc. reported its quarterly profit plunged 70 percent from a year ago, but managed to exceed Wall Street estimates. Oil giant Chevron Corp. booked a $2.6 billion writedown of its Venezuela operations and another $1.8 billion charge due to its forecast for lower commodities prices. Overall, the company lost $8.3 billion during the quarter as the COVID-19 pandemic zapped oil demand. Rival Exxon Mobil Corp., meanwhile, lost money for the second quarter in a row, recording a $1.1 billion loss. Ford Motor Co. saw its quarterly profit increase 11-fold versus last year to $1.1 billion, but warned it expects a loss for 2020. The automaker paid down $7.7 billion of $15.4 billion borrowed through revolving credit facilities and said it has plenty of cash on hand should COVID-19 cause more production to go offline. Athletic apparel maker Under Armour Inc. sales fell 41 percent as stay-at-home orders shuttered retailers across the country, but results topped expectations as online sales experienced “significant” growth. Looking at commodities, gold gained more than $169 for the month, wrapping its biggest monthly gain since January 2012. The precious metal ended July at $1,962.80 an ounce after earlier on Friday crossing $2,000 for the first time. Meanwhile, West Texas Intermediate crude oil rose $1 for the month to close at $40.27 per barrel. U.S. Treasurys were little changed with the yield on the 10-year note holding near 0.536 percent. In Europe, Germany’s DAX and France’s CAC fell 0.54 percent and 1.43 percent, respectively, after data showed European Union gross domestic product slumped by a record 11.9 percent from the prior quarter. Meanwhile, Britain’s FTSE was weaker by 1.54 percent. In Asia, Japan’s Nikkei fell 2.82 percent, Hong Kong’s Hang Seng lost 0.47 percent and China’s Shanghai Composite added 0.71 percent.
Stocks ended June with another move higher, capping the best quarter for the major indexes in decades. The Dow Jones Industrial Average ended up 217 points, 0.85 percent higher. The S&P 500 jumped 1.5 percent. The Nasdaq Composite climbed 1.87 percent. The Dow ended the second quarter with a 17.8 percent gain, the biggest quarterly gain since 1987. The S&P 500 is up nearly 20 percent, the best quarter since 1998. Nasdaq Composite is up 30.6 percent, the best quarter since 1999. The yield on the 10-year ticked up slightly to 0.658 percent, 0.022 points higher. Oil slipped slightly lower, with West Texas Intermediate crude closing at $39.38 a gallon, 0.86 percent lower, and the global standard Brent Crude falling 1.37 percent. All 11 sectors of the S&P were up for the day. Energy was the best performing sector, followed by health care and consumer discretionary. Utilities, industrials, and consumer staples–sectors that tend to outperform when investors seek to reduce risk–were the laggards.
Definitely some much-needed good news! 🙂
Investors piled into U.S. equities after a surprise jobs report showed the U.S. economy is seeing a faster than expected rebound from its COVID-19 lockdowns. The Dow Jones Industrial Average surged 829 points or 3.15 percent, while the S&P 500 jumped 2.62 percent. New economy stocks helped the tech-heavy Nasdaq touch an intraday all-time high of 9,842, but the index closed just under that level with a gain of 2.06 percent. Amazon, Microsoft and Apple, which hit a fresh record, all contributed to the gains lifting the Nasdaq 100 Index. The U.S. economy added 2.51 million jobs in May as the unemployment rate fell to 13.3 percent, according to a report released Friday morning by the Labor Department. Wall Street analysts surveyed by Refinitv were expecting the economy to lose 8 million jobs as the unemployment rate spiked to 19.8 percent. President Trump, who posted an enthusiastic tweet afterward, praised the strength of the U.S. economy in a Rose Garden news conference and said 2021 would be its best year yet. That would also be the first year of Trump’s second term, should he fend off Democratic challenger and former Vice President Joe Biden to win re-election in November. “We’ll go back to having the greatest economy anywhere in the world, nowhere close,” Trump promised. The labor market may see further gains in the month of June after New York Gov. Andrew Cuomo on Thursday said New York City will begin its Phase 1 reopening on Monday, allowing construction, manufacturing and limited retail services to restart. Looking at stocks, Dow components Goldman Sachs and Home Depot helped drive the gains. Air carriers continued to soar after United Airlines announced plans to reinstate flights to 150 destinations beginning in July. Rival American Airlines announced on Thursday it would increase its flight schedule to 55 percent capacity. Hertz shares surged on the heels of the positive travel updates. The car-rental company filed for bankruptcy on May 22. Other travel-related names, including cruise operators, hotels and booking sites, also outperformed. In retail, embattled department store J.C. Penney is closing 154 sites in 38 states as it reorganizes its business after filing for Chapter 11 bankruptcy last month. On the earnings front, Gap lost nearly $1 billion during the three months through March as the COVID-19 pandemic forced the company to shutter stores. The retailer said 55 percent of its locations have reopened and online sales are strong. Messaging platform Slack, meanwhile, was under pressure as first-quarter revenue growth was little changed despite the majority of Americans working from home. West Texas Intermediate crude oil jumped 5.72 percent to $39.55 per barrel after OPEC and its allies neared a deal to extend production cuts through July. The energy component surged 11 percent this week. Gold fell 2.48 percent to $1,676.20 an ounce on Friday and lost 3.49 percent for the week. U.S. Treasurys remained under pressure, with selling driving the yield on the 10-year note up to 0.903 percent. In Europe, France’s CAC advanced 3.71 percent, Germany’s DAX climbed 3.36 percent and Britain’s FTSE rose 2.25 percent. Asian markets rallied across the board, with Hong Kong’s Hang Seng up 1.66 percent, while Japan’s Nikkei and China’s Shanghai Composite gained 0.74 percent and 0.39 percent, respectively.
Incredibly great news!! Let’s pray this continues!! 🙂
The S&P 500 and Nasdaq Composite rallied on Tuesday to notch record closing highs as Wall Street cheered stronger-than-expected quarterly profits from some of the largest publicly traded U.S. companies. The broad index closed 0.9% higher at 2,933.68, topping its previous record close of 2,930.75. The S&P 500 also ended the day just below its intraday record of 2,940.91. The Nasdaq closed up 1.3% at 8,120.82. The Dow Jones Industrial Average, meanwhile, gained 145.34 points to close at 26,656.39 and was 1.1% from an all-time high. Tuesday’s move toward an all-time closing high comes less than six months after a sharp decline in late December, which led the S&P 500 to its worst annual performance since 2008. But stocks quickly turned around as the Federal Reserve reversed course on monetary policy while the tone around U.S.-China trade talks improved. “These market levels are justified,” said Kevin Barry, chief investment officer at Captrust Advisors. “The fourth-quarter sell-off actually prevented a recession because policymakers responded extremely quickly. Both President Xi and President Trump cooled off the rhetoric and Fed Chairman Jerome Powell came out and reversed course.” Dow members Coca-Cola and United Technologies reported better-than-expected quarterly earnings on Tuesday. Their shares rose 1.7% and 2.3%, respectively. Twitter shares jumped 15.6% on its stronger-than-expected results. The social media company said its monthly active users totaled 330 million, more than a FactSet estimate of 318 million. Defense giant Lockheed Martin also rallied more than 5% after its earnings easily topped expectations. The company reported strong operating margins across all its major businesses, which include aeronautics and missiles. Procter & Gamble also posted stronger-than-forecast earnings…
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