On Friday, U.S. market indexes climbed higher after a report on June retail sales came in stronger than expected, capping a week in which Federal Reserve Chairman Jerome Powell assured investors that rising inflation was only a transitory issue. What is the current state of stock benchmarks?
The Dow Jones Industrial Average DJIA, -0.39 percent rose 55 points, or 0.1 percent, to 35,032, with the blue-chip index hitting an intraday high near a record of 35,091.56.
The S&
The Nasdaq Composite Index COMP, -0.26 percent was up 34 points, or 0.2 percent, at 14,574 points.
The Dow Jones Industrial Average rose 53.79 points, or 0.15 percent, to 34,987.02, the S&P 500 Index slid 14.27 points, or 0.33 percent, to 4,360.03, and the Nasdaq Composite Index closed 101.82 points, or 0.70 percent, lower at 14,543.13.
The Dow is currently up 0.5 percent for the week, marking its fourth consecutive increase; the S&P 500 is expected to advance 0.1 percent, while the Nasdaq is expected to fall 0.6 percent, the first time in four weeks. The Russell 2000 index RUT, +0.07% of small-capitalization companies was on track for a 4 percent drop this week, marking its third straight loss. What is the market’s driving force? On Friday, U.S. market indexes rose somewhat, boosted by technology sectors, but after Federal Reserve Chair Jerome Powell repeated that inflation will climb for a few months before decreasing. Investors have been digesting mainly positive second-quarter corporate earnings announcements, but the data is mixed. June retail sales statistics may have done little to alleviate rising inflation fears. Last month, retail sales in the United States grew 0.6 percent, contrasting to an estimate of a 0.4 percent fall. Excluding vehicles, retail sales increased by 1.3 percent, nearly three times the amount predicted by Wall Street. Even though the Federal Reserve claims it is only a temporary occurrence, the research shows that Americans are paying more for a variety of goods and services. Read more: A ‘strong’ US economy is strengthening, according to the Fed’s Beige Book, but it’s dealing with large shortages and increased inflation. Meanwhile, jitters on Wall Street have been fueled by the spread of the more transmissible delta coronavirus variant, but the path of least resistance remains higher for stocks and lower for Treasury yields, with the 10-year benchmark TMUBMUSD10Y, 1.313 percent briefly falling below 1.30 percent on Thursday. The drop in yields shows that fixed-income investors are either skeptical about economic growth in the aftermath of the pandemic or agree with Powell that inflation will be temporary. Separately, US Vice President Joe Biden will participate in a virtual meeting with Pacific Rim leaders on Friday, including China’s Xi Jinping and Russia’s Vladimir Putin, to devise methods for helping economies recover from the resurgent COVID-19 pandemic. Inflation is on the rise. How far will it rise? MarketWatch has launched a new tracker. In Germany, Chancellor Angela Merkel has promised immediate assistance in the wake of devastating flooding in the western region of the nation, which has killed more than 90 people and left hundreds missing due to relentless rains that have caused rivers and reservoirs to overflow. Which businesses are being scrutinized?
Charles Schwab Corp. (SCHW) posted second-quarter earnings on Friday, with profit falling short of expectations but sales beating expectations as the company added 1.7 million new brokerage accounts, surpassing 1 million for the third quarter in a row.
The company’s stock was down more than 2%.
GameStop Corp. GME shares jumped 2.8 percent on Friday, extending a rally that began late in the previous session and putting the company on course to halt a five-day losing run.
Kansas City Southern KSU reported a net loss in the second quarter due to more than $700 million in merger expenses, as well as an adjusted profit and revenue that fell short of projections. The stock was down 0.5 percent.
A late-stage research of a treatment for head and neck cancer failed to reach its major aims, according to Bristol-Myers Squibb Co. BMY. The stock market was essentially unchanged.
Didi Global DIDI, -2.59 percent, a U.S.-listed Chinese ride-hailing business, fell 3% after state security and police authorities were dispatched to the company’s offices on Friday as part of a cybersecurity probe, according to the Associated Press.
Intel INTC, +0.29% was in the spotlight when The Wall Street Journal claimed that the semiconductor behemoth was considering a $30 billion acquisition of chipmaker GlobalFoundries.
Intel’s stock was up 0.8 percent.
Moderna Inc. MRNA, +9.56 percent, a biotechnology company that rose to prominence after developing a highly effective COVID-19 vaccine, is scheduled to replace Alexion Pharmaceuticals Inc. ALXN, -0.31 percent in the S&P 500 index.
Moderna’s stock was up 5.4 percent, while Alexion’s was down 0.5 percent.
What about your other assets? How are they doing?
The 10-year Treasury note rate increased 3 basis points to 1.33 percent. Bond prices and yields move in opposite directions.
The ICE U.S. Dollar Index DXY, which compares the currency to a basket of six main competitors, was up less than 0.1 percent.
Oil prices increased, with the US benchmark CL00 up 0.3 percent but down more than 3% for the week, while gold futures GC00 down 0.1 percent to $1,826.30 an ounce, but were set to rise for the week.
The Stoxx Europe 600 SXXP declined less than 0.1 percent in Europe, while London’s FTSE 100 UKX rose less than 0.1 percent.
In Asia, the Shanghai Composite SHCOMP fell 0.7 percent but gained 0.4 percent on the week, the Hang Seng Index HSI rose 0.03 percent but gained 2.4 percent on the week, and Japan’s Nikkei 225 NIK fell 1% but gained 0.2 percent./n
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