Damien J. Trowers, Alex Veiga
Wall Street stocks continue to rise in Wednesday afternoon trading.
The S&P 500 was up 1.7% as of 3:02 pm ET. The Dow Jones Industrial Average rose 453 points (1.4%) to 32,850, while the Nasdaq rose 2.7%.
The index recovered its losses earlier in the week. Technology companies, retailers and telecom companies were the biggest winners. Only energy stocks fell as oil prices fell.
Small business stocks also rose, boosting the Russell 2000 Index by 1.4%.
Investors cheered the report on the services sector, which makes up a large part of the US economy. The sector grew faster than expected in his July, according to the Institute for Supply Management.
“This just gives people more evidence that this economy is hanging out there,” said Jeff Backbinder, an equity strategist at LPL Financial. “At the moment, there is some evidence that inflation is declining,” he said.
Yields on 10-year government bonds rose to 2.75% from 2.73% late Tuesday.
Earnings remain in focus this week as investors analyze the latest results and statements from businesses to better understand how inflation is affecting businesses and consumers.
Drugstore chain CVS is up 6.4% after reporting strong results and raising its profit forecast for the year. Starbucks also rose 4.6% after reporting strong earnings. Nearly three-quarters of the companies in the benchmark S&P 500 reported earnings in the most recent quarter, with results mostly beating analyst expectations.
However, some companies have failed with disappointing results. Yum Brands, owner of Taco Bell, fell 1.7% after a weak earnings report, while online dating service Match Group lost about five minutes to its value after giving investors weak financial forecasts. lost his one of
PayPal soared 8.9% after reports that activist investor Elliott Management had bought a large stake in PayPal.
Robinhood Markets, whose stock trading app helped lure a new generation of investors to the market, rose 11.9% after it announced it would cut nearly a quarter of its workforce. The crypto crash and stock market turmoil have turned many customers away from the app.
Oil prices fell after OPEC decided to increase production in September at a much slower pace than in the previous month. US crude fell 4% to settle at $90.66 a barrel, while international benchmark Brent crude fell 3.7% to settle at $96.78 a barrel.
Falling oil prices weighed on energy stocks.Hess down 3.2%
Markets are also eyeing the potential economic impact from China after US House Speaker Nancy Pelosi’s visit to Taiwan. China has claimed Taiwan as part of its territory and has banned Taiwanese citrus and frozen fish imports in retaliation for Pelosi’s visit. But it has avoided disrupting the flow of computer chips and other industrial goods that could destabilize the global economy.
Future data on the job market could help investors determine how the Federal Reserve will proceed with aggressive interest rate policy to keep inflation in check. Last week’s U.S. unemployment claims numbers were released on Thursday, and the government will release his July employment report on Friday.
“The Fed rate hike hopes may have been a little too bullish,” Backbinder said. It’s in.”
US Stocks Continue Rising After Strong Earnings Report – thereporteronline
Source link US Stocks Continue Rising After Strong Earnings Report – thereporteronline