Benchmark US indices recovered the previous day’s losses to end the week on a high note on Friday, July 9, with the S&P 500 notching another record close amid a grim outlook on the pandemic front.
The S&P 500 was up 1.13% to 4,369.55. The Dow Jones rose 1.30% to 34,870.16. The NASDAQ Composite gained 0.98% to 14,701.92, and the small-cap Russell 2000 was up 2.17% to 2,280.00.
Investors appeared to have shrugged off concerns of the delta variant of covid that is fast spreading in some states. On Thursday, markets had retreated sharply on a bevy of economic concerns.
Meanwhile, Fed chief Jerome Powell, who is expected to brief Congress on inflation next week, said that shortage of materials and hiring difficulties slowed the US economic recovery from the pandemic.
The 10-year Treasury bond yields went up by 5% on Friday after seeing a fourth consecutive day of decline, while prices of energy and gold also increased. Analysts opined that the increasing gold prices could be a sign of economic stress as more people typically buy gold during a crisis.
Nine of the 11 major segments of the S&P 500 were in positive territory. The financial and energy stocks were top movers, while basic materials shares were bottom movers.
Analysts have forecast around 65% earnings growth rate for the S&P 500 companies in the latest quarter, higher than 54% they estimated earlier, according to Refinitiv.
Clothing company Levi Strauss & Co. (LEVI) stock rose 1.36% after forecasting a robust full-year profit, mainly from the higher demand for jeans, tops, and jackets. Chinese ride-hailing company DiDi Global Inc. (DIDI) stock jumped 9.14% after seeing a significant drop in its prices since its debut last month. The stock plunged after China launched a cybersecurity review of the company.
Shares of NASDAQ-listed SGOCO Group, Ltd. (SGOC) surged 447.29%, and E-commerce and software company Stamps.com Inc. (STMP) jumped 63.78% after it agreed to be acquired by the private equity firm Thoma Bravo for a cash-deal value of US$6.6 billion.
In energy stocks, Exxon Mobil Corp (XOM) rose 1.88%, Chevron Corp (CVX) gained 1.49%, and Royal Dutch Shell plc (RDS-A) surged 1.34%. TotalEnergies SE (TTE) and Conoco Phillips added 1.31% and 1.82%, respectively, while Enbridge Inc. (ENB) advanced 0.89%.
In financial stocks, Berkshire Hathaway Inc. (BRK-A) rose 2.43%, Visa Inc. (V) increased by 1.01%, and JPMorgan Chase & Co. (JPM) gained 3.38%. Bank of America Corporation (BAC) and Mastercard Incorporated (MA) advanced 3.66% and 1.68%, respectively. PayPal Holdings, Inc. (PYPL) rose 1.70%.
Electric vehicle maker Tesla, Inc., stock gained 0.44%, and General Motors Co. (GM) rose 4.81% after receiving an 'outperforming' rating from the investment firm Wedbush Securities Inc. The stock of aerospace company Airbus SE (EADSF) rose by 3.82%.
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Top performers on S&P 500 included Discover Financial Services (6.19%), Nov Inc (5.99%), State Street Corp (5.68%), SVB Financial Group (5.57%). On NASDAQ, top performers were SGOCO Group Ltd (279.46%), Stamps.Com Inc (63.98%), Tempest Therapeutics Inc (49.38%), Toughbuilt Industries Inc (45.75%). On Dow Jones, Goldman Sachs Group Inc (3.57%), Travelers Companies Inc (3.24%), JPMorgan Chase & Co (3.20%), Dow Inc (2.72%) were the leaders.
Top laggards on S&P 500 included Biogen Inc (-2.95%), Dexcom Inc (-1.40%), Resmed Inc (-1.22%), Baxter International Inc (-1.11%). On NASDAQ, Nova LifeStyle Inc (-27.38%), Sigilon Therapeutics Inc (-25.32%), Meta Materials Inc (-17.39%), Bon Natural Life Ltd (-17.08%). On Dow Jones, Salesforce.Com Inc (-0.30%), Merck & Co Inc (-0.17%), Procter & Gamble Co (0.04%), Microsoft Corp (0.19%) were the laggards.
Top volume movers were Apple Inc (19.88M), Bank of America Corp (12.24M), General Electric Co (11.67M), Ford Motor Co (11.49M), AT&T Inc (9.79M), Microsoft Corp (8.83M), Intel Corp (7.04M), Toughbuilt Industries Inc (22.00M), SGOCO Group Ltd (21.16M), Exela Technologies Inc (16.15M), Galectin Therapeutics Inc (11.58M), Carver Bancorp Inc (10.51M), Sundial Growers Inc (9.35M).
Futures & Commodities
Gold futures were up 0.46% to US$1,808.55 per ounce. Silver increased by 0.77% to US$26.188 per ounce, while copper rose 1.80% to US$4.3412.
Brent oil increased by 1.98% to US$75.59 per barrel and WTI crude was up 2.32% to US$74.63.
The 30-year Treasury bond yields were up 4.24% to 1.991, while the 10-year bond yields increased by 5.82% to 1.363.
US Dollar Futures Index decreased by 0.33% to US$92.102.