By ALEX VEIGA
After a plunge at the beginning of the week, Wall Street shares closed at highs for the second straight day on Wednesday.
The S & P 500 has risen 0.8% and is currently on a weekly pace of increase. Technology stocks, banks and businesses that rely on consumer spending have helped advance the benchmark index. Energy stocks also rose as US crude oil prices rose 4.3%. Utilities and real estate stocks were on the decline.
The rapid recovery of the market from Monday’s sharp sell-out of investors has taken into account the signs of economic growth as the economy resumes, strong corporate profits, rising inflation and the recovery of the employment market against potential risks of more infectivity. A delta variant of COVID-19 that reflects the trigger of the war.
Bill Nosy, senior investment director at US Bankwealth Management, said the stock market has overcome the pandemic and is beginning to see what the recovery looks like.
“I have some doubts now. What is the pace and extent of the economic recovery from here?” Nosy said.
The S & P 500 rose 35.63 points to 4,358.69. The Dow Jones Industrial Average rose 286.01 points (0.8%) to 34,798, and the Nasdaq Composite Index rose 133.08 points (0.9%) to 14,631.95. The Dow and Nasdaq also regained their losses from the sale on Monday.
Traders continued to bid on small business stocks. The Russell 2000 Index was 2,234.04, 39.74 points (1.8%) ahead of the other major indexes.
The S & P 500, the benchmark for many index funds, has continued to rise over the past few weeks, hitting new highs, despite volatile trading bouts. What has helped boost stock prices in the last two days has been better than expected by large corporations.
Summer is usually late for Wall Street, with investors and traders on vacation and stable until the end of the year. With the exception of big economic reports, the main driver of the market is how well companies are doing to meet their expectations.
Coca-Cola, a component of the Dow, rose 1.3% on Wednesday after the company raised its full-year forecast and reported better-than-expected results. Fast-food chain Chipotle Mexican Grill soared 11.5% to maximize profits on the S & P 500 after reporting much better results than expected after Tuesday’s Closing Bell.
Not all revenue was positive. Netflix fell 3.3% after reporting the worst slowdown in subscriber growth over eight years.
Next week, when more than 100 members of S & P 500 report their quarterly results, the earnings season will begin in earnest. So far, the earnings season has been strong, with more than 80% of S & P 500 exceeding analysts’ expectations, according to FactSet. That’s despite Wall Street already having high expectations for businesses.
Bond yields continued to recover from the sharp decline at the beginning of the week. Yields on 10-year government bonds rose from 1.20% the day before to 1.29%. Yields on 10-year bonds fell to teens on Monday due to concerns that coronavirus delta variants could impact global economic growth.
Among the big winners on Wednesday, Morgan Stanley rose 3.6%, chipmaker Lam Research rose 5%, and Occidental Petroleum rose 7.1%. Cruise operators, who lost big on Monday’s market slides, rebounded again. Norwegian Cruise Line was up 10.1%, Carnival was up 9.4% and Royal Caribbean was up 5.4%.
Stocks rise to Wall Street as more corporate earnings roll in – News-Herald
Source link Stocks rise to Wall Street as more corporate earnings roll in – News-Herald