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Inventory futures rise to kick off August buying and selling after S&P notches sixth-straight profitable month

Stock futures rise to kick off August trading after S&P notches sixth-straight winning month

U.S. stock futures rose on Monday as investors geared up for the first trading day of August.

Dow Jones Industrial average futures rose 93 points, or 0.3%. S&P 500 futures gained 0.4% and Nasdaq 100 futures added 0.5%. The S&P 500 and the Dow sit less than 1% from new all-time highs.

Stocks continued to shake off concerns about the delta variant of Covid, and stocks that would benefit the most from a continued economic recovery led the gains in premarket trading Monday.

Shares of Carnival Corp. were up 3% in premarket trading. Major banks including Morgan Stanley and Bank of America were higher. Airline shares were mostly higher.

“We believe the reopening and recovery trend is on track and continue to see upside for equities,” wrote Mark Haefele, chief investment officer of global wealth management at UBS. “We expect the S&P 500 to climb to around 4,650 by June next year, versus 4,395 at present. But we see the greatest upside for cyclical parts of the market, including energy, financials, and Japanese stocks.”

The Senate was finalizing the text of a bipartisan infrastructure bill, also bolstering optimism on Monday. The bill includes $550 billion in new spending over five years. That’s on top of previously approved funds of around $450 billion.

Caterpillar shares added 1% in premarket trading.

The S&P 500 managed to notch its sixth month of gains in July, although volatility increased amid concerns about the economic recovery in the face of the spreading delta Covid variant. It’s the best monthly winning streak for the benchmark since 2018. The Nasdaq Composite and Dow Jones Industrial Average added about 1.2% and 1.3%, respectively, in July, while the broad S&P 500 gained close to 2.3% last month.

The U.S. is averaging more than 72,000 new Covid cases a day the last 7 days, according to the latest CDC shows, levels not seen since February this year. However, stocks still traded near all-time highs last week even as concerns about the delta variant grew.

“At the end of the day, the stock market is driven by two things: 1) Earnings and 2) Multiples and until COVID (or China) begins to negatively impact one or both of those metrics, stocks can stay resilient,’ Tom Essaye, founder of Sevens Report, said in a note.

Concerns about inflation also plagued the market, however a key inflation indicator showed lesser-than-feared price pressures on Friday. The core personal consumption expenditures price index rose 3.5% in June year-over-year. It marked a sharp acceleration in inflation, but came in slightly below a Dow Jones forecast of a 3.6% jump.

Also on Friday, U.S. second-quarter gross domestic product accelerated 6.5% on an annualized basis, considerably less than the 8.4% rate of growth expected by economists polled by Dow Jones.

Stock picks and investing trends from CNBC Pro:

On the earnings front, Amazon sank nearly 7.6% Friday after the tech giant reported its first quarterly revenue miss in three years and gave weaker guidance. 

But an overall strong earnings season continues to be a tailwind for the market. So far, 88% of S&P 500 companies that have reported have topped EPS estimates, according to FactSet. For the second quarter, the S&P 500 is on track to post earnings growth of 85.1%, which would be the best growth rate since 2009, according to FactSet.

The first trading day of August comes with more big earnings on the way. Lyft, Amgen, Uber, CVS Health, General Motors, Roku and Square all report quarterly results this week.

Square shares sank in premarket trading after Jack Dorsey’s payment company announced a $29 billion all-stock deal to buy Australian installment loan provider Afterpay. Square was off by 4%.

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Dow rises greater than 100 factors as shares head for a profitable week

Dow rises more than 100 points as stocks head for a winning week

Traders and finance professionals work on the floor of the New York Stock Exchange.

Drew Angerer | Getty Images

US stocks rose on Friday as major averages tried to post their fourth straight day of earnings and ease worries about economic growth earlier in the week.

The Dow Jones Industrial Average gained 145 points, or 0.4%, for a fourth straight day. The S&P 500 rose 0.2%. The Nasdaq Composite was up 0.4%. The S&P 500 was on course for a record close above the July 12th closing high.

The 10-year government bond yield rose to 1.285% on Friday, easing economic concerns raised by the bond market on Monday. The 10-year yield fell to a 5-month low of 1.13% earlier this week.

“We expect the markets to remain choppy, but there is no basic justification for more aggressive sales,” wrote the Barclays strategists in a customer announcement. “In fact, the strong recovery since Tuesday shows that the animal spirits are intact.”

Strong gains from technology stocks kept investors optimistic amid reports from the biggest names in the industry over the next week. Twitter and Snap both rose Thursday after better-than-expected earnings reports for the second quarter. Twitter traded more than 1% higher while Snap shot up 22%.

Facebook gained about 3% over the results of its social media competitors. Alphabet added about 1.5%. Both will report next week together with Apple, Microsoft and Amazon.

All three US stock averages are on track to close the week in the green after recovering from last week’s losses and sharp sell-off on Monday. The Dow lost more than 700 points at the start of the week as yields fell, unsettling equity investors about the economy.

The S&P 500 is up more than 1% this week and the Nasdaq Composite is up about 2%. Both are also within 1% of their intraday records. The Dow is up 0.8% for the week.

The strength of tech stocks also comes along with the continued proliferation of the highly contagious Delta variant of Covid.

“We saw in the depths of the pandemic that tech stocks and their earnings did best at BMO Wealth Management,” said. “Long-term interest rates, which are falling as much as they did, also make these stocks more attractive.”

The equity market as a whole was supported by a strong reporting season. With a quarter of the S&P 500 reporting, Refinitiv expects earnings growth of 76% for the second quarter, the best growth since 2009. And profit margins are holding up amid rising inflation. For the second quarter, the companies have so far reported average profit margins of 12.8%, according to S&P Global, which is above the historical range.

American Express reported better-than-expected quarterly results on Friday morning, giving its stocks a 3.5% gain.

Honeywell also reported strong gains, even though the stock was down 1.5%. Kimberly-Clark shares fell 3% after earnings were reported in line with Wall Street forecasts. The annual forecast was also lowered, citing higher costs and lower volumes.

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Dow drops greater than 380 factors, S&P 500 is ready to snap 7-day successful streak

Dow drops more than 380 points, S&P 500 is set to snap 7-day winning streak

Traders on the floor of the New York Stock Exchange

Source: NYSE

Shares fell on Tuesday as Wall Street began the shortened vacation week on concerns that perhaps the best economic recovery from the pandemic was behind us.

The Dow Jones Industrial Average fell about 380 points, dragged down by losses at JPMorgan, Chevron and Goldman Sachs. The S&P 500 lost 0.7% and the Nasdaq Composite traded the flat line after both averages hit records at the opening. US markets were closed on Monday for Independence Day on July 4th. The S&P 500 has had a seven-day winning streak, the longest since August.

Investors are juggling multiple signs that rapid economic growth may peak from the depths of the pandemic. The ISM Services Index, a key benchmark for the services sector, slowed from a record high in the previous month to 60.1 in June, data released Tuesday showed. Economists polled by Dow Jones expected a pressure of 63.5. This follows Friday’s job report, which showed that the unemployment rate rose back to 5.9% from 5.6%, compared to expectations.

Bond yields also fell Monday, with 10-year government bond yields below 1.4%, further evidence that investors are questioning the strength of the US economy.

While business stocks like Caterpillar and JPMorgan fell, tech stocks rose. Amazon, Apple and Microsoft were higher.

Amazon surged nearly 3% and became technology leaders when Andy Jassy officially took over as CEO on Monday. Jeff Bezos is now Executive Chairman of the Board.

Still, after a strong first half performance amid a historic economic reopening, many on Wall Street expect smaller and more troubled gains for the remainder of the year. The S&P 500 is up nearly 16% since the start of the year.

“The US economy is booming, but we know it by now and the asset markets reflect it. Which is no longer so clear what price this growth will come at, “said Michael Wilson, chief strategist for US equities at Morgan Stanley, in a note. “Higher costs mean lower profits, another reason the stock market has narrowed overall … Stock markets will likely pause this summer as things heat up.”

Wall Street’s consensus year-end target for the S&P 500 is 4,276, a loss of nearly 2% from current levels of 500 stocks, according to the CNBC Market Strategist Survey, which rounds up the forecasts of 16 top strategists.

“Everything is perfect and that worries me,” said Sarat Sethi, portfolio manager at DCLA, in CNBC’s “Squawk Box” on Tuesday. “We’ve had a 5% correction since October, that’s it. I think we’re in a little bit of euphoria in the short term. We have to be careful and I think you want to be in secular growth.” Companies, don’t just chase the market because I think the market will be very picky about which sectors will do well. “

U.S. shares in Chinese ride-hailing giant Didi plummeted as much as 25% after China said new users would not be able to download the app until a cybersecurity clearance was conducted. The announcement surprised the markets as Didi only made his US debut on the NYSE last week.

West Texas Intermediate crude oil rose to a six-year high after an important meeting between the oil producing group OPEC and its partners on crude oil exploration policy was canceled. The postponement came when the United Arab Emirates rejected a proposal to extend oil production increases for a second day. At some point on Tuesday, WTI crude oil hit as high as $ 76.98, the highest price since November 2014 after pulling back before the opening bell.

Investors await the release of the June Federal Open Markets Committee’s minutes of the June meeting for clues to the central bank’s behind-the-scenes discussions on the abolition of its quantitative easing program.

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Dow rises almost 200 factors as Wall Road heads for profitable first half

Dow rises nearly 200 points as Wall Street heads for winning first half

U.S. stocks climbed near record highs on Wednesday as the market completed a successful first half and second quarter of 2021.

The Dow Jones Industrial Average rose around 190 points, boosted by strong days for Walmart and Boeing, while the S&P 500 was up 0.1%. The Nasdaq 100 lost around 0.1%.

Wednesday is the last day of the second quarter and the last day of the first half of 2021. At the start of the session, the S&P 500 was up 14% year-to-date, while the Nasdaq Composite and the Dow were both up 12%. For the quarter, the S&P 500 is up 8%. The S&P 500 and Nasdaq all posted new record closings on Tuesday.

The S&P 500 is heading for its fifth consecutive positive month, rising 2.1% to 4,291.80 in June. The broad index is also on track for its best first half since 2019.

Investors have shrugged off the high inflation readings and continued to buy stocks in hopes that an economic comeback for the pandemic would continue and that the Federal Reserve would for the most part maintain its loose policies. The top three Dow winners this year are Goldman Sachs, American Express, and Walgreens Boots Alliance, all of which are up more than 30%. Chevron, Microsoft, and JPMorgan Chase are each up more than 20%. The technology and health sectors of the S&P 500 both closed Tuesday with record highs.

The gains came as nearly 60% of adults in the US received a COVID-19 vaccine, which allows the economy to reopen quickly. Still, new variants of the virus have raised some concerns that other restrictions such as wearing masks would have to be reintroduced as the pace of vaccinations has slowed.

Investors have “a number of reasons to be constructive,” wrote Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, citing economic dynamism, strong credit markets and possible fiscal stimuli.

Lee raised his S&P 500 target for 2021 from 4,300 to 4,600 in a statement to his customers on Tuesday evening. The new forecast means a 7% gain from here.

Jeff Kilburg, chief investment officer at Sanctuary Wealth, told CNBC that he is optimistic for the second half of the year thanks to the Federal Reserve’s continued commitment to economic recovery.

“We can fight inflation what we want and we can fight over what metric to use for inflation, but I think at the end of the day we really see the Fed’s commitment,” Kilburg said, adding that The amount of investor money on the sidelines should keep minor pullbacks from turning into major corrections.

Some investors and strategists have cited the spread of the Delta variant of Covid-19 as a risk for the markets in the second half of the year. However, JPMorgan’s Marko Kolanovic said in a statement to clients on Wednesday that the variant shouldn’t hurt stock markets, citing low death rates in countries with widespread vaccination.

Good first halves for the market usually bode well for the rest of the year. Whenever there was double-digit growth in the first half of the year, the Dow and S&P 500 never ended this year with an annual decline, according to Refinitive data from 1950.

One group that helped the broader market to its latest record high are semiconductors. The VanEck Semiconductor Index has risen 6% since June 18 and more than 3% in the first two days of this week.

“Semis have recovered strongly and in the last two trading days have finally broken the downtrend that has existed since this high in mid-February. New highs and a broken downward trend? It’s been a big week for Semis. ”Bespoke Investment Group said in a statement to clients.

Pending home sales rose to their highest level since 2005 in May. However, mortgage demand fell last week, the Mortgage Bankers Association said on Wednesday, with high prices and low supply crowding out some potential buyers. The readings came after a spike in home prices, reflected in the S&P CoreLogic Case-Shiller Index, which drove homebuilders stocks up on Tuesday.

The Institute for Supply Management’s Chicago Purchasing Managers Index came in lower than expected in June but was still expanding.

During Tuesday’s regular session, stocks barely changed in light trading, although the S&P 500 hit its fourth straight session and an all-time high.

Stocks are unlikely to see much movement until Friday’s labor market report gives a better idea of ​​the state of the economy. According to a Dow Jones poll, economists expect 683,000 new jobs in June.

On Wednesday, payroll firm ADP reported that private payrolls rose 692,000 in June, exceeding expectations. However, the company’s May figure has been revised downwards.

– CNBC’s Robert Hum contributed to this report.

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Dow closes up 450 factors at its session excessive, posts a successful week

Dow closes up 450 points at its session high, posts a winning week

US stocks climbed Friday, ending the volatile week on a high as stocks that benefited from a successful economic reopening outperformed again.

The Dow Jones Industrial Average closed 452.97 points, or 1.4%, to 33,072.52. The S&P 500 rose 1.7% to 3,974.50, led by energy and materials. The Nasdaq Composite was down 0.8% and ended the session 1.2% higher. All three key benchmarks recovered to their session highs by the end.

Financial stocks rose after the Federal Reserve announced that banks could resume buybacks and raise dividends from late June. The central bank originally announced that it would lift restrictions on the pandemic in the first quarter, but even the belated move gives investors more clarity.

JPMorgan’s shares were up 1.5% while Bank of America was up 2%. Goldman Sachs was up 1%.

Classic re-opening games build on the dynamics of the previous session. American Airlines was up 1% while Royal Caribbean, Carnival and Norwegian Cruise Line were up more than 1%.

President Joe Biden announced a new goal Thursday of distributing 200 million Covid vaccine shots within his first 100 days in office. As of Friday, there have been 100 million coronavirus vaccinations since Biden was inaugurated.

Fears of rising inflation eased after the data showed tamed price pressures. The core consumer spending index, which excludes volatile food and energy prices, rose 0.1% month-on-month, in line with the expectations of economists polled by Dow Jones. Year after year, the measured value rose by 1.4% and was thus slightly below an estimate of 1.5%.

“PCE deflator data, which is softer than expected, supports the idea that government bond yields are likely to consolidate in the near term,” said Edward Moya, senior market analyst at Oanda. “The lower the inflation base, the easier it is for markets to convince themselves that the impending rise in price pressures will be temporary.”

The 10-year US Treasury yield fell from its peak after the inflation data, and most recently rose 3 basis points to 1.65%. The rate jumped 6 basis points earlier.

Meanwhile, consumer sentiment in the US continued to rise during the introduction of the vaccine. A University of Michigan poll released Friday found the consumer sentiment index finalized at 84.9 in March, up from 76.8 in February. Economists polled by Dow Jones expected a value of 83.7.

The Dow and S&P 500 are on track for small wins in the week of consecutive wins. However, the Nasdaq is still lower on the week. The rally to record highs has slowed in recent weeks amid rising interest rates and valuation concerns.

“The market has been feeling rather choppy lately and this could become more of the norm as we enter the second year of recovery,” said Larry Adam, chief investment officer at Raymond James. “These periods, like most, are not moving in straight lines as there will be drawdowns along the way. This is not for concern, but investors should expect and take advantage of some weakness.”