Stocks win to end volatile week
Economic optimism helped US stocks rise for a fourth straight session on Friday, with all three major indices poised to close at record highs.
In the middle of the afternoon, the
Dow Jones Industrial Average
rose 245 points or 0.7% and is on track to close above 35,000, a milestone he has already crossed six times before. the
were both up 1%, poised for new records as well. The 10-year Treasury yield, which generally rises and falls with expectations of economic demand and inflation, fell from 1.26% to 1.28%.
One factor promoting optimism: solid economic data abroad. The European Union purchasing managers index was 60.06, better than the expected 60. Retail sales in the UK rose 0.5%, more than the expected increase of 0.4%.
“I think the economic data supports [markets]Says Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company.
Data in the United States was also strong. The US Manufacturing PMI posted a reading of 63.1, better than estimates of 62 and higher than the previous reading of 62.1. PMI services missed expectations.
It comes as investors sought the claim that the economy was bouncing back to expectations, as the Covid-19 Delta variant caused some concern.
It is important to note that studies also show that the vaccines are effective against the Delta variant.
While optimism about economic growth is strong, investors are hedging their bets as many anticipate maximum economic growth. Tech stocks were doing well, with the
Select Sector SPDR technology
exchange-traded funds (XLK) up 0.9%. Profits from tech companies can often maintain robust growth regardless of changes in economic demand. Over the past month, money has been pulled from economically sensitive financials and materials stocks and tech funds, according to Bank of America.
European equity markets were up following mixed trading in Asia. the
Stoxx Europe 600
increased by 1.1%. the
Hang Seng Index
was down 1.5% in Hong Kong.
The profit season is also well underway. Thursday, the semiconductor company
(ticker: INTC) reported better-than-expected earnings as it said the chip shortage could last for another two years. Intel shares fell 6.2%.
The stock (SNAP) rose 24.5% after posting profit of 17 cents per share, beating estimates of a loss of 1 cent per share, on sales of $ 982 million, above expectations of $ 846 million.
(TWTR) rose 4.1% after reporting earnings of 20 cents per share, beating estimates of 7 cents per share, on sales of $ 1.2 billion, above expectations of 1.1 billion dollars.
The stock (AXP) rose 1.8% after posting profit of $ 2.80 per share, beating estimates of $ 1.63 per share, on sales of $ 10.24 billion, at- above expectations of $ 9.6 billion.
Stock (SBUX) rose 2.4% after being outperformed to Neutral Outperformance at Baird.
Boston Beer Co.
(SAM) stock fell 25% after posting earnings of $ 4.75 per share, missing estimates of $ 6.60, on sales of $ 603 million, lower than expectations of $ 676 million .