NEW YORK (CBSNewYork) – On Monday (July 12), the Dow flirted with its first-ever closing above 35,000 points as US markets put up another record-breaking session ahead of a flurry of earnings and economic announcements. The blue-chip index ended the day at 34,996.18, up 0.4 percent. At 8 p.m. GMT, the index was slightly above 35,000 points, but it fell below the benchmark after the closure.
The broad-based S&P 500 rose 0.4% to 4,384.63, while the tech-heavy Nasdaq Composite Index up 0.2% to 14,733.24.
All three major indices concluded at all-time highs, indicating that investor optimism about the economy has outweighed concerns about inflation and the Delta variant of COVID-19.
READ: The US economy grew by 6.4 percent in the first quarter, and it’s only the beginning
Investors are gearing up for a busy earnings season, which kicks off on Tuesday with JPMorgan Chase and Goldman Sachs reports.
According to CFRA Research’s Sam Stovall, the quarter will be the second strongest in the last 25 years.
Analysts at DataTrek Research, however, warned that the earnings season “has to be spectacular” if the rally is to continue.
In a note, DataTrek wrote, “We’re reminded of the old market phrase, ‘buy the rumour, sell the news.” “The first part is currently in progress. We’ll see how the second section goes in a moment.” READ: Global Economic Recovery Will Be Stronger in the United States, China, and Related Asian Markets
Other noteworthy events this week include Federal Reserve Chair Jerome Powell’s congressional hearing and the release of June consumer pricing and retail sales statistics.
On Monday, New York Fed President John Williams told reporters that the recovery in key parts of the US economy is still insufficient for the central bank to begin reducing its hefty stimulus program.
Large banks had a strong day as treasury bond yields rose and investors awaited earnings reports. JPMorgan Chase, Goldman Sachs, Citigroup, and Bank of America have all increased their stakes by at least 1%. Another big winner was Disney, which jumped 4.2 percent after a good opening weekend for its Black Widow superhero film. According to CNBC, the entertainment behemoth also intends to raise the price of its ESPN+ streaming subscription./n
