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TODAY IN THE USA
Stocks on Wall Street ended the day with a broad gain, adding to the gains that had helped the market close off its greatest first half of the year since the dotcom bubble.
The S&P 500 index increased by 0.5 percent, marking its sixth consecutive gain and fourth consecutive record high. The price of crude oil in the United States increased by more than 2%, boosting energy firms. Bond yields rose a smidgeon, boosting bank stocks. Companies in the health-care and communications industries also contributed to the market’s growth. The sole laggard was the consumer staples sector, which was pulled down by a sell-off in Walgreens Boots Alliance shares. Data showing that the economy is still recovering from the pandemic has given investors hope. The most recent weekly unemployment report revealed the lowest number of jobless help claims since the epidemic hit the economy. The much-anticipated June jobs report will be released on Friday. The largest settlement ever reached by Robinhood: In a world-record settlement, a brokerage was fined $70 million for disruptions and deceiving consumers. “Investors are watching to see if the labor market continues to rebound at its current pace,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. The S&P 500 index increased 22.44 points to 4,319.94 points. The Dow Jones Industrial Average rose 131.02 points to 34,633.53, up 0.4 percent. The Nasdaq Composite, which is heavily weighted in technology, rose 18.42 points, or 0.1 percent, to 14,522.38. Small-cap stocks outperformed the rest of the market. The smaller-company Russell 2000 index increased 18.81 points, or 0.8 percent, to 2,329.36. (Photo: Intercontinental Exchange/New York Stock Exchange) The S&P 500 index concluded the first half of 2021 up 14.5 percent, its highest six-month record since 1998, as investors embraced the post-pandemic economic resurgence and put inflation concerns to the side. Employment has been one of the more shaky aspects of the recovery, lagging behind other indicators like consumer confidence and retail sales. More individuals returning to work, according to economists and analysts, is required for a much larger and more stable recovery. The June jobs report will be released to investors on Friday. According to economists polled by FactSet, the US economy added 675,000 jobs in month, bringing the unemployment rate down to 5.7 percent. The June jobs report is also being extensively scrutinized as a possible indicator of when the Federal Reserve may begin to ease its bond-buying program and other interest-rate-lowering policies. Inflation fears have abated slightly, but investors are still trying to figure out whether rising inflation is a one-time event or a long-term trend. Investors will be watching the jobs data to see if salaries have continued to rise, which could add to inflation. “All of these factors are influencing whether the Fed makes significant policy changes in the near future,” Ripley added. Following the latest optimistic unemployment numbers, airlines and other travel-related firms that have been harmed by the pandemic gained momentum. Delta Air Lines gained 2.2 percent, while Marriott gained 2%. The 10-year Treasury note’s yield increased to 1.46 percent from 1.44 percent the day before. As OPEC gathered, oil prices soared. As the world economy recovers from the pandemic, the group of oil-producing countries is debating whether to expand output. Oil prices, like those of other raw resources, have been steadily rising this year as demand has grown. Oil rose 2.4 percent on Thursday, bringing its year-to-date gain to 55 percent. “The story of the day has been crude oil,” said J.J. Kinahan, chief strategist at TD Ameritrade. “Because practically everyone will use gasoline directly to travel somewhere, crude oil will strike people’s wallets a lot faster and have a far bigger effect.” Greater oil prices resulted in higher stock prices for energy companies. Occidental Petroleum increased by 5.1 percent, ConocoPhillips increased by 3.3 percent, and Marathon Oil increased by 4%. With a gain of nearly 40% in the first half of the year, the energy sector of the S&P 500 was the greatest winner. Krispy Kreme, a doughnut chain, rose 23.5 percent in its Nasdaq debut. The glazed doughnut firm from Charlotte, North Carolina, priced its first public offering of 29.4 million shares at $17 each, significantly below the $21 to $24 it had hoped for. Krispy Kreme is on its second stint as a publicly traded firm. http://www.usatoday.com/story/money/markets/2021/07/01/wall-street-hits-another-record-energy-stocks-banks-gain/7834835002//n
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