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On June 30, 2021, workers make truck parts at a plant in Qingzhou, Shandong Province, China.
Getty Images/AFP/AFP/AFP/AFP/AFP/AFP/AFP/AFP
On Wednesday, the S&P 500 struck a new high, putting an exclamation point on a successful trading day. Stocks ended the day neutral on Wednesday, coming off a relatively positive first half of the year. Following a better-than-expected ADP payrolls report, the more economically sensitive companies outperformed. The
The Dow Jones Industrial Average is a stock market index that measures how well
The Dow Jones Industrial Average increased 211 points, or 0.6 percent, while the S&P 500 Index increased 211 points, or 0.6 percent
S&P 500 Index
went up 0.1 percent to a new high of 4,297.52 points. The
The Nasdaq Composite Index
fell by 0.2 percent
The S&P 500 set a new high for the fifth day in a row on Wednesday. The last time the index had that many record closes in a row was the six days ending August 28, 2020. The S&P 500 gained 8% in the second quarter and 15% in the last six months. The June ADP private-sector employment report shows a slowdown in hiring from May, bringing economic data back into focus. In June, private payrolls increased by 692,000, exceeding predictions of 550,000 but falling short of the 886,000 jobs gained in May. Stocks that are more sensitive to economic shifts have outperformed, a tendency that began immediately after the market opened. For example, the Invesco S&P 500 Equal Weight Consumer Discretionary Exchange-Traded Fund (RCD) gained 0.55 percent for the second day in a row. Even yet, a better-than-expected ADP payrolls data is generally taken with a grain of salt by investors. JJ Kinahan, chief market strategist at TD Ameritrade, writes, “Everything this week is building toward the June payrolls report on Friday.” The ADP number frequently differs from the Bureau of Labor Statistics number released on Friday, which investors pay close attention to. In May, pending home sales increased by 8% month over month, beating expectations of a 1% drop and the previous figure of a 4.4 percent drop.
The
The Stoxx Europe 600 index is a stock market index that measures the performance of
was under pressure, falling 0.8 percent as banks and automakers suffered losses. In the first half of the year, the index was expected to gain roughly 13%. German jobless claims fell by 38,000 in June, compared to a 20,000 drop predicted by experts polled by The Wall Street Journal. On Wednesday, investors may be concerned about the extremely contagious Delta strain of Covid-19. “As the world grapples with the Delta variety of Covid, there may be some uncertainty and caution,” Kinahan adds. “Worries about that appeared to be one element driving European stocks lower today.” Asian equities ended the day with a mixed bag.
The Nikkei 225 index is a Japanese stock market index.
According to FactSet, the economy is slowing, with the first half of 2021 ending just under 5% higher. China’s
The CSI 300 index is a rating system for companies.
increased 0.6 percent, with a first-half gain of roughly 3.5 percent. In June, an official measure of factory activity in China fell, hampered by chip and power supply bottlenecks, while nonmanufacturing growth slowed as Covid-19 cases rose.
Didi, a Chinese ride-hailing company that priced its IPO at $14, will begin trading on the New York Stock Exchange on Wednesday under the ticker DIDI.
Micron Technology is a type of semiconductor.
The stock (ticker: MU) gained 2.47 percent after BMO Capital Markets upgraded it to Outperform from Market Perform.
Virgin Galactic Holdings is a company that owns Virgin Galactic.
(SPCE) slumped 2.28 percent after Bank of America downgraded it from Buy to Underperform. This comes after a month in which the stock has risen by more than 60%.
Seagate Technology is a company that specializes in data storage
(STX) gained 0.29 percent after Barclays raised it from Underweight to Equal Weight.
Masco
(MAS) gained 1.31 percent after Goldman Sachs upgraded it to Buy from Neutral.
Bed Bath & Beyond is a retailer that sells home goods.
(BBBY) stock jumped 11.3 percent after the company reported a profit of 5 cents per share on sales of $1.95 billion, beating expectations of $1.87 billion. The stock has earned the moniker “meme stock.” Jacob Sonenshine can be reached at jacob.sonenshine@barrons.com./n
