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Dow jumps 200 factors, S&P 500 hits report as Powell prepares markets for Fed’s bond taper this 12 months

Dow jumps 200 points, S&P 500 hits record as Powell prepares markets for Fed's bond taper this year

Traders work on the trading floor of the New York Stock Exchange in New York, USA, 19 August 2021.

Wang Ying | Xinhua News Agency | Getty Images

Shares rose on Friday, heading for a successful week as Federal Reserve Chairman Jerome Powell prepared the markets for the central bank to pull back on some of its monetary stimulus and said it will likely begin its monthly bond purchases in the amount of $ 120 billion this year.

The Dow Jones Industrial Average gained 244 points, or 0.6%. The S&P 500 rose 0.8% to hit a record 4,505.16. The Nasdaq Composite gained 1.1% to hit a record 15,102.70.

The three most important stock averages will all close the week in the green. The Dow is up 0.9% since weekday, while the S&P 500 is up 1.4% and the Nasdaq Composite is up 2.5%.

The 10-year government bond yield featured in Powell’s speech this week eased slightly after the Fed chief made it clear that rate hikes would not follow immediately after the tapering ended.

“The timing and pace of the impending reduction in bond purchases will not be a direct signal of the timing of the rate hike, for which we have formulated a different and much more stringent test,” said Powell.

Powell also said inflation is solidly around the central bank’s 2% target rate, one of the targets of the Fed’s dual mandate. However, it “has a lot of ground to overcome” to meet its other goal of maximum employment, although there has been “clear progress” along the way, Powell added. The Fed has used the phrase “significant further progress” as a measure of when it will start tightening monetary policy.

Based on statements from other Fed officials, a reduction in the announcement could be made at the Fed meeting on September 21-22.

The financial market reaction on Friday is a sign that the central bank has so far been successfully preparing investors for their monthly $ 120 billion in 2013. Markets seem relieved that the Fed is not planning to hike rates anytime soon, said Michael Arone, Chief Investment Strategist for the US SPDR business at State Street Global Advisors.

“Rate hikes are far, far away and investors are excited about them,” he said. “I think Powell deserves credit for mastering asset reductions and avoiding a tantrum. The market appears to be well prepared for the reductions to begin.”

The speech also signaled that the Fed is not nearly as nervous about prices as some in the market and in Washington, said Adam Crisafulli, founder of Vital Knowledge.

“Powell spends most of the speech addressing inflation concerns,” he said of the speech, adding that Powell “is addressing concerns about rate hikes and telling markets that the threshold for rate hikes is much higher than a cut.”

Cornerstone Wealth’s chief investment officer, Cliff Hodge, noted that Powell held firm to the Fed’s view that increased inflation is temporary, despite the fact that the Department of Commerce on Friday reported the largest increase in consumer spending since 1991. The PCE index rose 4.2% in July on the same date last year and 0.4% on the previous month.

“He successfully threaded the needle to communicate that the taper is likely to begin this year while reiterating the idea that the taper is not a tightening,” Hodge said. “We believe that this September, subject to further setbacks from the Delta variant, is likely to result in a number of blowout jobs and set the table for the official reduction announcement at the FOMC meeting in September.”

Energy stocks led the S&P higher after being hit hardest on Thursday. Occidental Petroleum was up 7%, Cimarex Energy was up 6% and Marathon Oil was up 5%.

Workday’s shares were up 11% after reporting strong earnings and subscription income currently, up 23% year over year. Gap rose nearly 2% after the apparel retailer’s quarterly earnings report beat sales and bottom line, while Peloton stocks fell after the exercise equipment maker’s fourth quarter financial results missed Wall Street’s estimates. The peloton fell 8%.

The three major US indices closed the regular trading session lower on Thursday. The Dow had a four-day winning streak while the S&P 500 and Nasdaq Composite both broke a five-day winning streak.

Market participants also observed new developments in Afghanistan that appeared to weigh on investor sentiment. The Pentagon confirmed Thursday that explosions near Hamid Karzai International Airport in Afghanistan killed 13 US soldiers and injured 18.

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“The markets don’t like uncertainty and uncertainty in Afghanistan is high and feels like it is rising,” said Bob Doll, chief investment officer of Crossmark Global Investments.

The indices are on track to end the month higher. The Dow was up 1.4% in August. The S&P 500 is up 2.5% this month and the Nasdaq Composite is up 2.9%.

– Jeff Cox, Patti Domm, and Yun Li contributed to this report.

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Dow rises greater than 200 factors to begin the week whereas traders await key Fed summit

Dow rises more than 200 points to start the week while investors await key Fed summit

Traders on the floor of the New York Stock Exchange, August 11, 2021.

Source: NYSE

Stocks were higher in early trading Monday following a volatile week on Wall Street as investors eye a key event where the Federal Reserve could hint at prospects for tapering stimulus.

The Dow Jones Industrial Average gained 245 points, or nearly 0.6%. The S&P 500 added 0.7% and the Nasdaq Composite rose 1%.

Shares of vaccine makers are trading higher after the Food and Drug Administration granted full approval for the two-dose Pfizer-BioNTech vaccine on Monday, the first licensing of a vaccine for Covid-19. Pfizer shares are up 3.7%. Its partner BioNTech’s stock jumped 9% and Moderna is 5% higher. Trillium Therapeutics is soaring on news that it’ll be acquired by Pfizer. Its shares are up 188%.

Bitcoin hit a three-month high on Sunday, punching above $50,000 and pulling crypto-adjacent stocks up with it. Coinbase and Microstrategy are 2% higher.

Major averages are coming off a losing week as investors grew worried that the Fed’s potential move to pull back monetary stimulus could slow down the economic recovery that is already challenged by the spread of the delta Covid-19 variant.

Traders are eagerly awaiting the Jackson Hole symposium for clues on the Fed’s timeline for dialing back its $120 billion a month bond-buying program. The event takes place virtually on Thursday and Friday. The Fed previously was going to conduct the event in a mixed virtual and live presentation, but decided Friday to go all virtual in light of the rising virus risk.

Chairman Jerome Powell’s speech will be titled “The Economic Outlook,” which “may suggest the speech could have a more near-term focus,” Nomura economist Aichi Amemiya said in a note.

“Given the recent deterioration in incoming data and the pandemic situation, we see some risk Powell focuses on increased uncertainty due to the latest COVID-19 surge,” Amemiya added. “At a minimum, we view recent comments from Fed officials as supporting our view of a December tapering announcement despite a preference on the FOMC for November as of the July meeting.”

The blue-chip Dow fell 1.1% last week, while the S&P 500 declined nearly 0.6%, breaking a two-week winning streak. The tech-heavy Nasdaq dipped 0.7% during the week.

“We suspect investor conviction is being challenged by the potential for upcoming monetary policy changes, shifting growth vs. value rotations, and a rising trajectory of new coronavirus cases,” Craig Johnson, technical market strategist at Piper Sandler, said in a note.

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For the month of August, major benchmarks are poised to post modest gains. The S&P 500 is up 1.1% month to date, while the blue-chip Dow has gained 0.5% and the Nasdaq has climbed 0.3%.

“August is a historically volatile month for markets and this year is no different, with investors currently climbing multiple walls of worries,” said Rod von Lipsey, managing director at UBS Private Wealth Management. “Upticks in Covid-19 cases and a downward spiral in Afghanistan are creating a crisis of confidence, at a time when many investors are on holiday.”

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Dow bounces greater than 200 factors on Friday, however nonetheless heads for dropping week

Dow bounces more than 200 points on Friday, but still heads for losing week

Major U.S. stock averages rebounded Friday while markets remained on track for a losing week driven by fears of the Federal Reserve pulling back its stimulus.

The Dow Jones Industrial Average gained about 220 points, or 0.6%. The S&P 500 added 0.6%. The tech-heavy Nasdaq Composite rose 0.7%.

Technology stocks traded in the green Friday, providing the market with support. Microsoft, Cisco and Salesforce were among the biggest gainers in the Dow as investors snapped up tech stocks amid concerns about slowing economic recovery. Chip stocks rose, with Nvidia among the Nasdaq’s top winners.

Tesla shares inched higher after Elon Musk’s electric car maker had an AI day, where it unveiled a new custom chip and plans to build a humanoid robot. The stock is down more than 5% this week as investors worried about growth in China, one of the electric vehicle maker’s key markets.

This week, WTI crude oil has tumbled more than 8%, taking energy stocks with it. Diamondback Energy and Valero Energy are down roughly 10% and 9%, respectively, on the week.

All three major stock indexes are on track to close the week lower. The S&P 500 is down 0.8% for the week, while the Dow is off 1.1% and the Nasdaq Composite is 1.2% lower.

Minutes from the Fed’s July meeting released this week showed the central bank is willing to start reducing its monthly asset purchases this year. Investors sold equities and commodities this week and bought bonds on fears the move by the Fed may upend a global economy already under stress by the delta variant.

“With Fed tapering coming while delta variant keeps spreading, the transition away from liquidity/policy regime to more mid-cycle markets means we may experience a bumpier ride ahead,” Barclays equity strategists said in a note. “Market narrative may thus turn more cautious, as concerns about peaking growth rates, Delta variant and policy mistake may prove headwinds, at a time where seasonality and technicals are unfavourable.”

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—CNBC’s Pippa Stevens contributed reporting.

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Dow futures drop 300 factors on concern concerning the Fed eradicating stimulus

Dow futures drop 300 points on concern about the Fed removing stimulus

Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, 17 August 2021.

Andrew Kelly | Reuters

Stock futures fell sharply on Thursday as concerns increased that the Federal Reserve might remove incentives this year, which could curb an economy hurt by the spread of the Covid Delta variant.

Futures on the Dow Jones Industrial Average fell 361 points, or 1%. The Dow was down 380 points on Wednesday as the release of minutes of the Fed’s July meeting showed the central bank had begun to cut its monthly bond purchases by $ 120 billion before the end of the year.

S&P 500 futures lost 0.9% and Nasdaq 100 futures lost 0.7%.

“The minutes reflect a Fed poised to accelerate its tapering schedule into perhaps the next few months,” said Sean Bandazian, investment analyst at Cornerstone Wealth. “Both the Fed and the market participants have learned from the taper tantrum. Although we expect fewer surprises this time around, there is still reason to believe that we will experience volatility in all areas of the market with high interest rate sensitivity.”

WTI crude fell more than 3% to around $ 63 and copper lost more than 3% on worries about global growth without the Fed’s bond buying support. The 10-year government bond yield fell more than 4 basis points to 1.23%. (1 basis point corresponds to 0.01%.)

Goldman Sachs cut its economic growth forecast for the current quarter from 9% on Wednesday evening to 5.5%, adding to the negative sentiment. The company also sees higher-than-expected inflation for the rest of the year.

“The influence of the delta variant on growth and inflation is proving to be somewhat greater than we expected,” wrote Jan Hatzius, chief economist at Goldman Sachs, in the press release. “Spending on restaurants, travel and some other services is likely to decline in August, although we expect the decline to be modest and brief. Manufacturing is still suffering from supply chain disruptions, particularly in the auto industry, and this will likely mean less inventory build-up in Q3. “

Before the trading session, stocks closely related to the economy led to price losses. The steel manufacturer Nucor lost more than 3%. Oil companies Devon Energy and Occidental Petroleum lost around 3% and 4% respectively. Bergmann Freeport-McMoRan fell around 4%. General Motors lost about 2%. Reopening games like airlines and hotels were also lower.

The Fed’s central bankers planned at their July meeting to slow the pace of their monthly bond purchases, likely before the end of 2021, the minutes released on Wednesday afternoon show.

“Looking to the future, most participants noted that they believed it might be appropriate to start slowing asset purchases this year, provided the economy performs as expected,” the minutes read .

The Dow fell more than 1% on Wednesday for its worst performance in a month.

Robinhood stock fell 9% in pre-trading after its first earnings report as a publicly traded company. The app warned investors that a slowdown in trading could hurt third quarter results.

“For the three months ending September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and significantly fewer refinanced accounts than in the previous quarter,” the company said in the earnings release.

Nvidia stock bucked trend, rising more than 1% in pre-IPO trading after the chip giant’s quarterly earnings and revenue surpassed Wall Street estimates amid strong graphics card sales.

Investors will be monitoring new data on unemployment claims Thursday morning. Economists polled by Dow Jones expect a total of 365,000 for the week ending August 14, slightly less than the previous week’s total of 375,000.

From the week to Wednesday, the Dow and S&P 500 were each down 1.5%. The Nasdaq Composite is 2% lower.

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Dow falls practically 400 factors as Tuesday’s sell-off intensifies

Dow falls nearly 400 points as Tuesday's sell-off intensifies

US stock indices fell on Tuesday as retail sales fell in July and worries about a slowdown in global economic growth increased.

Still, the losses came Tuesday after the Dow Jones Industrial Average and S&P 500 closed at record highs in the previous session.

The Dow fell 390 points, or 1.1%. The S&P 500 lost 1% and the Nasdaq Composite lost 1.2%.

Retail sales fell 1.1% in July, a decline more than the 0.3% decline expected by Dow Jones’ polls. The Census Bureau corrected the June figure to a jump of 0.7%.

“If we look at expectations for future consumer strength, some of the lead will be diminished by the rise of the Delta variant,” said Yung-Yu Ma of BMO Wealth Management. “These challenges are not going to go away anytime soon.”

Home Depot fell more than 4% after posting second quarter results, hurting the Dow. While quarterly earnings exceeded estimates, sales in the same store rose 4.5% during the reporting period, below the consensus estimate of 5% of analysts surveyed by StreetAccount. In the United States, sales in the same stores only increased 3.4%.

Walmart stocks rose slightly and then traded near the flatline after earnings beat estimates in the second quarter. The retailer grew in the grocery sector and reported a strong start to the back-to-school season.

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Disappointing economic data from China on Monday heightened concerns about a slowdown in global growth. Chip stocks fell for a second day on Tuesday, with the iShares Semiconductor ETF down more than 2% and Nvidia about 3%. The shares of Tesla and Boeing, both of which are also heavily dependent on the growth market China, fell.

Meanwhile, technology names were trending downward. Big tech stocks, including Google parent Alphabet, Amazon, Apple and Facebook, traded in the red.

Elsewhere, health stocks saw strength, with the S&P 500 Health Care Sector making record highs. United Health, Merck, and Johnson & Johnson all acted green.

The Dow and S&P 500 closed at record highs in their fifth consecutive positive session on Monday. The move of the S&P 500 during Monday’s session marked a milestone as the benchmark index doubled from its pandemic closing low on March 23, 2020. This is the fastest doubling of the bull market since World War II, according to calculations by CNBC.

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Dow rises 220 factors to new report after inflation report is just not as unhealthy as feared

Dow rises 220 points to new record after inflation report is not as bad as feared

The Dow Jones Industrial Average and the S&P 500 rose on Wednesday after inflation jumped, but not by quite as much as investors feared when stripping out volatile food and energy prices.

The 30-stock Dow gained 220.30 points, or 0.6%, to 35,484.97 to close at a new record. The index was lifted by names like Caterpillar and Home Depot. The S&P 500 traded up 0.2% to 4,447.70, also notching an all-time high. The technology-heavy Nasdaq Composite traded over 0.1% lower to 14,765.14.

July’s Consumer Price Index released Wednesday showed prices jumped 5.4% since last year, compared to expectations of 5.3%, according to economists surveyed by Dow Jones. The government said CPI increased 0.5% in July on month-to-month basis.

But investors were concentrating on the core rate of inflation, which could signal inflation will remain tempered and the economy will remain strong. CPI, excluding energy and food prices, rose by 0.3% last month, below the 0.4% increase expected. Core prices still jumped 4.3% on a year-over-year basis.

“It’s encouraging to see the pace moderating a bit month over month supporting the notion that recent price increases are transitory and reopening related,” said Mike Loewengart, managing director of investment strategy at E*TRADE Financial. “So while inflation continues to run hot, it’s likely that investors are already pricing it in.”

Used car prices, which investors have been watching as one sign of out-of-control inflation, rose just 0.2% in July after surging more than 10% in the prior month.

The data “should help assuage investor fears that the Fed is too laid-back about inflation pressures, ” said Seema Shah, chief strategist at Principal Global Investors. “The details of the data release suggest some easing in the reopening and supply-shortage driven boost to prices, and tentatively suggests that inflation may have peaked. Investors in the transitory camp will feel slightly vindicated.”

The inflation reading supported the Federal Reserve’s belief that high price pressures are “transitory” as the economic recovers from the pandemic-triggered recession.

The 10-year Treasury yield dipped amid the inflation report and a strong auction. The decline in rates accelerated after Dallas Fed President Robert Kaplan told CNBC that the Fed should start tapering its bond-buying programs in October.

Oil prices dropped and then recovered after the White House called on OPEC and its allies to increase oil production to support the global recovery from the pandemic.

On Tuesday, the Dow and S&P 500 closed at record highs following the Senate passing the $1 trillion infrastructure bill. The legislation earmarks $550 billion in new spending for areas including transportation and the electric grid. The Nasdaq Composite slid nearly 0.5% on Tuesday, registering its second negative session in the last three.

The march to record highs for stocks comes despite Covid case numbers rising in the U.S. and around the world.

“Widespread vaccine distribution and distancing measures have helped limit the variant’s impact, but we could still see some drag on economic growth as some restrictions are reintroduced and consumers potentially become more cautious,” said Barry Gilbert, asset allocation strategist at LPL Financial. “While we may see an increase in market volatility due to the delta variant, we believe the S&P 500 is still likely to see more gains through the end of the year.”

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— with reporting from CNBC’s Yun Li.

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Dow rises greater than 100 factors to recent file

Dow rises more than 100 points to fresh record

Shares rose Tuesday, pushing the Dow and S&P 500 to new records as investors continued to fend off rising Covid cases from the Delta variant.

A bipartisan $ 1 trillion infrastructure bill was passed in the Senate to allay concerns about a slowdown in economic growth in the wake of the pandemic. The return on the 10-year yield rallied on Tuesday.

The Dow Jones Industrial Average rose about 176 points to hit a new intraday high. The S&P 500 rose 0.2% after hitting an intraday high at the start of the session. Meanwhile, the Nasdaq Composite lost 0.4%.

Bank stocks rose amid the surge in bond yields, but investors gave up technology stocks as rates rebounded. Goldman Sachs was up nearly 2%. Wells Fargo and Bank of America both gained more than 1.5%. The so-called FANNG names, however, were all in the red.

Energy stocks rebounded Tuesday after spearheading market declines on Monday, fueled by a fall in oil prices. Exxon Mobil and Chevron rose more than 1% on Tuesday and Diamondback Energy rebounded more than 2%. The US oil price rose 1.6% on Tuesday.

Stocks tied to the economic reopening also made up some of their losses on Monday. Norwegian Cruise Line was up 2% and American Airlines was up 1%.

The Senate passed a bipartisan infrastructure bill worth $ 1 trillion on Tuesday. The plan, which sees $ 550 billion in new spending on traffic and broadband, is expected to help boost the economy as peak growth slows after reopening after the pandemic.

During Monday’s regular trading, the Dow fell more than 100 points amid fears a wave of Covid cases could slow demand. The S&P 500 lost 0.1% and the Nasdaq Composite rose 0.16%.

AMC’s stock rose 4.7% on Tuesday after reporting a smaller-than-expected loss. The company also announced that it will accept Bitcoin in all US locations starting this year.

The winning season continues after the bell, and Coinbase will be reporting. The stock, which trades closely with Bitcoin price, fell 3% on Tuesday. SoftBank and Sysco will also report.

Bitcoin price fell 1.5% on Tuesday after rising 5% on Monday to its highest price since May.

Investors are waiting for the consumer price index and producer price index data, both of which measure inflation, to be released on Wednesday and Thursday, respectively. A handful of central bank spokespersons, including Chicago Fed President Charles Evans and Kansas City President Esther George, are also expected this week. Investors will watch out for clues as to how the Fed plans to scale back its bond purchases.

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Inventory futures are flat after Dow closes at file Friday

Stock futures are flat after Dow closes at record Friday

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, August 5, 2021.

Andrew Kelly | Reuters

Stock futures were flat in overnight trading Sunday after the Dow Jones Industrial Average notched a record close Friday following a stronger-than-expected jobs report.

Futures on the Dow added 2 points, or 0.01%. S&P 500 futures edged 0.06% lower and Nasdaq 100 futures dipped 0.13%.

U.S. senators reconvened Sunday to work toward the passage of a $1 trillion infrastructure bill, a top political priority of President Joe Biden. The Senate is slated to hold another key procedural vote late Sunday and vote on final passage Tuesday. The bipartisan package is expected to have sufficient Republican support to pass in the Senate and move to the House for consideration in September.

The moves in futures trading came after the Dow rose 144.26 points, or 0.4%, to close at an all-time high of 35,208.51. The S&P 500 rose 0.17% to reach its own record close of 4,436.52. The Nasdaq Composite bucked the trend, dipping 0.4% to 14,835.76. All three major indexes ended the week higher and saw their second positive week in three.

The Labor Department jobs report Friday showed the U.S. economy added 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate dropped to 5.4%, below the expectation of 5.7%.

“You saw a lot more jobs being created in those areas that are reopening — restaurants, hotels, logistics, transportation,” Raymond James Chief Investment Officer Larry Adam said. “That’s a good sign. I think that puts more spending power behind the consumer going forward and I think that that’s ultimately a good thing for the economy.”

The signs of a strong economic recovery could prompt the Federal Reserve to pull back its monetary support measures and prepare to begin tapering its bond-buying program.

“If it does continue to this magnitude, that probably does bring the Fed a little sooner into the game when it comes to tapering,” Adam said.

The yield on the benchmark 10-year Treasury note jumped as high as 1.3% after the better-than-expected jobs report. The 10-year yield this summer has pulled back significantly from its highs in March, when it neared 1.8%.

The financial sector led gains Friday as rates edged up, increasing banks’ profitability prospects. Industrials, retailers and energy stocks also moved higher as the strong jobs report eased concerns about the economic recovery.

Meanwhile, technology stocks retreated after the jump in rates. Rising rates discount the value of future earnings and therefore can hit growth stocks like technology names particularly hard.

Investors are awaiting key inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

Several Fed officials are scheduled for speaking appearances in the week ahead, with investors listening with a close ear for insights into the central bank’s tapering decision making. Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, Chicago Fed President Charles Evans and Kansas City Fed President Esther George are all set to speak this week.

Companies including Tyson Foods, AMC Entertainment, Coinbase, Lordstown Motors, Bumble, Palantir, Disney, Airbnb and DoorDash are set to report quarterly earnings this week.

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Dow jumps greater than 170 factors in noon rally

Dow jumps more than 170 points in midday rally

U.S. stocks moved higher on Tuesday as strength in bank and industrials stocks outweighed the travel names held back by Covid fears.

The Dow Jones Industrial Average jumped about 173 points, or 0.5%, almost halfway through the trading day, after briefly falling more than 100 points earlier in the session. The S&P 500 gained 0.5%, while the Nasdaq Composite was higher by 0.2%. The Dow sits about 0.5% from a record.

The 10-year Treasury yield stabilized on Tuesday after falling back to near five-month lows on Monday. As yields rebounded from their decline midday back to the unchanged mark, stocks edged higher.

Tuesday’s move for stocks served as something of a mirror image to Monday’s market action, which saw a late-day slump drag the Dow and S&P 500 into the red while the tech-heavy Nasdaq held on to a meager gain.

That sort of day-to-day volatility is to be expected after the strong run for stocks since spring of last year, said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

“Everyone knows that valuations are fairly high. The S&P 500 is up nearly 100% since the March low of last year. … So the market tends to be a little skittish to any kind of news right now,” Frederick said. “My outlook for most of Q3 has been that I’ve been expecting the market to be mostly sideways with slightly elevated volatility.”

On Monday, the Dow was boosted by stocks tied to the economic recovery, including banks, Caterpillar and 3M. Health care stocks like Amgen and Johnson & Johnson outperformed as well.

On the other hand, shares of companies that would be hit hardest by potential new health restrictions, including airlines and cruise lines, fell on Tuesday, limiting upside for the market.

The spread of the delta coronavirus variant continued to cloud the outlook for the economy. The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized Covid-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.

However, on the positive side the U.S. reached the 70% Covid vaccine milestone, according to the CDC.

“The delta variant of the virus is now rapidly spreading in the U.S. and a modest pullback in activity can’t be ruled out,” Solita Marcelli, CIO Americas at UBS, said in a note. “But any potential slowdown should be somewhat muted.”

Oil stocks moved higher as well, even as the price of West Texas Intermediate crude drifted down to about $70 per barrel. Adam Karpf, a managing director at CIBC Private Wealth focused on energy, said the move in oil was due more to trading patterns than the delta variant taking a major bite out of global growth.

“Assuming that this will be kept under control … we’ve had several months and weeks of a strong crude oil market and energy industry, and this is a breather,” Karpf said.

Traders on the floor of the New York Stock Exchange

Source: NYSE

Meanwhile, the second-quarter earnings season continues with Under Armour shares rose nearly 7% after the company beat estimates on the top and bottom lines. However, Clorox’s stock fell 10% after a disappointing report.

Shares of Simon Property jumped more than 2% after the mall owner said sales bounced back to pre-pandemic levels, up 80% from a year ago. It also reported a relatively high occupancy rate.

Through Friday, 88% of S&P 500 companies had reported a positive earnings surprise for the second quarter, which will mark the highest percentage since FactSet began tracking this metric in 2008.

Investors are closely monitoring progress in Washington as lawmakers move toward a bipartisan infrastructure bill that would devote $550 billion to U.S. infrastructure. Senate Majority Leader Chuck Schumer aims to rush the 2,702-page legislation through the chamber before a planned monthlong recess starting Aug. 9. 

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Dow futures up 100 factors after Fed retains rates of interest close to zero

Stock futures mixed ahead of major corporate earnings

US stock futures were mixed in trading Thursday morning after the Federal Reserve closed its two-day meeting of the Federal Reserve Open Market Committee by taking no action to buy assets.

Dow Jones Industrial Average futures gained 142 points. Meanwhile, S&P 500 futures hovered above the flatline and Nasdaq 100 futures traded slightly in negative territory.

PayPal and Facebook fell 5% and 3% respectively in after-hours trading after warning of a significant growth slowdown as they reported quarterly earnings.

Meanwhile, Ford’s shares rose nearly 4% after raising its outlook for 2021, saying it is selling more cars that are more expensive, despite missing analysts’ earnings estimates.

The moves in futures came after Fed chairman Jerome Powell warned in a press conference that while the economy is making progress towards its goals, there is still a way to go before the central bank would actually adjust its loose policy . Government bond yields rose slightly in anticipation of the announcement but fell slightly following Powell’s comments.

“We still have some work to do on the job side,” said Powell. “I think we are still a long way from having made significant progress towards the maximum employment target. I would like some strong employment figures.”

In regular trading, the Dow Jones Industrial Average fell 127.59 points, or nearly 0.4%, to 34,930.93 points. The S&P 500 ended the session little changed at 4,400.64. The Nasdaq Composite climbed 0.7% to 14,762.58.

“The market understood that we had a bad quarter here compared to last year,” said Michael Reynolds, vice president of investment strategy at Glenmede. “What is far more important this season are the forecasts we get for the quarters ahead as the economy adjusts to the new normal.”

Key averages are on track to end the month higher, with the S&P up 2.4% for July. The Nasdaq Composite and the Dow were up 1.8% and 1.2%, respectively.

Amazon, Pinterest and Anheuser-Busch will report their results on Thursday. Dealers will also keep an eye on the latest metrics on initial jobless claims and upcoming home sales.