July 29, 2021
New York (Reuters) – US equities closed at highs on Thursday, boosted by strong US earnings and forecasts, but recovered to pre-pandemic levels in the second quarter, according to data.
The US economy grew steadily in the second quarter, with gross domestic product levels above pre-pandemic peaks, but GDP growth was slower than economists expected.
In the latest bright earnings news, Ford Motor Company shares rose 3.8% as the company raised its annual earnings forecast, while KFC owner Yum! Brands rose 6.3% after exceeding quarterly earnings expectations. Did.
Peters, president of Chase Investment Adviser in Charlottesville, Virginia, said investors’ fears that lower-than-expected economic data could soon eliminate the Federal Reserve’s “monetary easing policy.” He said it might have eased. Investors also said, “We are making pretty good profits today.”
Stocks got a boost on Wednesday after the Federal Reserve Board said it wasn’t time to start withdrawing its massive monetary stimulus.
On Thursday, economically sensitive groups such as finance, materials and energy led the profits of the S & P sector.
The Dow Jones Industrial Average rose 153.6 points (0.44%) to 35,084.53, the S & P 500 rose 18.51 points (0.42%) to 4,419.15, and the Nasdaq Composite Index rose 15.68 points (0.11%) to 14,778.26. became.
The Dow and S & P 500 hit highs during the day early in the session.
The S & P 500 real estate sector also hit a daytime high, but fell 0.2%.
On the downside, Facebook Inc’s share fell by 4%. This is because the company warned that revenue growth would “significantly slow” following a recent update to Apple Inc’s iOS operating system, which affects the ad targeting capabilities of social media giants.
Graphic: Rising US Stock Market Valuation – https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyrnwjvw/Pasted%20image%201627570968776.png
Results were from about half of the S & P 500 companies as of Thursday morning. According to Refinitiv data, nearly 91% of the report is above the profit estimate, and second-quarter revenue is expected to increase by 87.2% from a year ago.
After the bell, Amazon.com Inc shares fell more than 5% after the company reported results and predicted third-quarter sales to be lower than Wall Street’s expectations.
In a regular session, Tesla Inc surged 4.7%, the biggest boost to the S & P 500, followed by Apple, which rose after Wednesday’s fall.
Also, shares in Robinhood Markets, a popular trading app used by many investors to participate in this year’s “meme” stock trading frenzy, fell 8.4% on the first day of trading.
Friday will focus on the June reading of the Consumer Expenditure Price Index, due to concerns that rising inflation and prices are not as temporary as expected.
While trading volume on the US exchange was 9.13 billion shares, the average for all sessions over the last 20 trading days was about 9.86 billion shares.
At NYSE, ongoing issues outnumber ongoing issues by a 2.34 to 1 ratio. On the Nasdaq, a 1.22 to 1 ratio favored the Advancer.
The S & P 500 recorded 76 new 52-week highs and one new low. The Nasdaq Composite recorded 105 new highs and 49 new lows.
(Report by Caroline Valetkevitch in New York, additional report by Sagarika Jaisinghani in Bangalore, edited by Maju Samuel and Matthew Lewis)
WallSt is profiting with bright revenue and forecasts
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