US stocks close at record highs as investors cheer blockbuster earnings

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US stocks finished the week strong with all three major indexes closing at records Friday as investors cheered blockbuster tech earnings and looked towards next week’s Fed meeting.

Shares of Snap soared 23% after the social media app exceeded earnings expectations. Twitter also gained after beating estimates, and Bank of America analysts said the stock could rise another 30% as the social media platform stands to see further growth in advertising sales which have been recovering after the onset of the coronavirus pandemic. The good news lifted tech peers Facebook and Google both by more than 3%.

Here’s where US indexes stood at the 4:oo p.m. ET close on Friday:

The blank-check company backed by billionaire Thomas Barrack withdrew its application for an initial public offering Friday, just days after the 74-year-old was arrested and charged with seven felony counts involving lobbying the Trump administration on behalf of the UAE.

Stocks in Asia were mostly lower earlier Friday over concerns of tighter regulation. Regulators in China are said to be considering severe sanctions on Didi Global following its US IPO. The ride-hail giant has fallen a stunning 52% since going public.

Also, a Bloomberg report that China is considering turning tutoring companies into non-profitspushed Chinese education stocks lower Friday morning.

The 10-year US Treasury yield climbed 1.8 basis points to 1.285% after hitting a five month low at the start of the week.

Bitcoin hovered just above $32,000.

West Texas Intermediate crude gained 0.21%, to $72.06 per barrel. Brent crude, oil’s international benchmark, gained 0.39%, to $74.08 per barrel.

Gold was little changed around $1,802.30.

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Dow stages 550-point comeback after harsh sell-off as investors remain optimistic on growth

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US stocks staged a comeback Tuesday after a harsh sell-off the previous day, with the Dow rebounding tk points as investors bought the dip and bet on the continued strength of the economic recovery.

Industrials, real estate, and financial stocks gained the most out of any sectors in the S&P 500. Industries that hinge on the economic re-opening like restaurants, travel, and lodging all ended the day in the green.

On Monday the S&P 500 faced its steepest decline since May while the Dow Jones saw its largest daily drop for the year.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

JPMorgan’s head of US equity strategy increased his year-end S&P 500 price target to 4,600 from 4,400, representing potential upside of 8% from Monday’s close. Dubravko Lakos-Bujas remained constructive on equities, and views the latest fears of slowing economic growth “premature and overblown,” according to a Tuesday note.

Billionaire investor Bill Ackman is also bullish about the economy. He told CNBC in a recent interview that he expects a “massive” economic boom in the fall.

Robinhood, the brokerage app set to go public in the coming weeks, said it expects to pay a $30 million penalty in relation to an anti-money laundering probe of its cryptocurrency business, according to an amended S-1 filed with the SEC on Monday.

The yield on the US 10-yr Treasury jumped 3.8 basis points to 1.219%, after hitting its lowest level since February on Monday.

Bitcoin slipped to $29,828 Tuesday, over 50% lower than record highs achieved in April.

West Texas Intermediate crude climbed 1.36%, to $67.32 per barrel. Brent crude, oil’s international benchmark, jumped 1.59% to $69.71 per barrel.

Gold was flat at $1,809.

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US stocks slump as investors digest inflation data showing prices surged in June

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US stocks fell Tuesday after inflation data showed prices rose more than expected in June.

The Consumer Price Index increased 0.9% in June, far higher than Bloomberg’s consensus estimate among economists of 0.5%. The reading marked the largest one-month change since June 2008.

On a year-over-year basis, prices increased 5.4%, higher than economists’ expectations for a 4.9% year-over-year increase. However, June 2020 was the lowest point for Core CPI during the pandemic shutdown, so year-over-year increases are expected.

Here’s where US indexes stood at the 4 p.m. ET close on Tuesday:

Mike Lowengart, E*Trade Financial managing director of investment strategy, said that the real question on investors’ minds after the CPI read is how long hot inflation numbers will last.

“Transitory has been the buzzword when it comes to inflation but it’s a tricky phrase. Does it mean a few months, a year, or even longer? Every successive high inflation read will make it harder and harder for the Fed to remain accommodative. And on the markets front, we may experience a bit of a tug of war as traders balance the economic data with strong bank earnings beginning to roll in,” he said.

Elsewhere in markets, Amazon, Apple, Alphabet, and Microsoft all hit record intraday highs today. The stalwarts are helping propel the S&P 500 to new all-time highs.

The benchmark index has notched 39 record closing highs through Monday’s session, according to Bespoke Investment Group. If it keeps up its current pace, it could close out 2021 with 74 record closing highs, the second-most of all time, Bespoke said.

The yield on the US 10-year Treasury gained 4.7 basis points to 1.41%.

Bank earnings began this morning, with JPMorgan and Goldman Sachs beating expectations.

West Texas Intermediate crude gained 1.58% to $75.27 per barrel. Brent crude, oil’s international benchmark, climbed 1.77%, to $76.49 per barrel.

Gold was flat at $1,807.2 per ounce.

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US stocks drop as inflation data shows prices rose more than expected in June

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A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020.

US stocks dipped at the open after key inflation data showed prices rose more than expected in June.

The Consumer Price Index increased 0.9% in June, far higher than Bloomberg’s consensus estimate among economists of 0.5%. The reading marked the largest one-month change since June 2008.

On a year-over-year basis, prices increased 5.4%, higher than economists’ expectations for a 4.9% year-over-year increase. However, June 2020 was the lowest point for Core CPI during the pandemic shutdown, so year-over-year increases are expected.

“A white-hot June CPI print has the markets jittery this morning. Stripping away food and energy, it was the highest print for Core CPI since November 1991 on a year-over-year basis, however moving forward we expect these inflation numbers to begin to cool,” said Cliff Hodge, Cornerstone Wealth chief investment officer.

Here’s where US indexes stood at the 9:30 a.m. ET open on Tuesday:

Bank earnings began this morning, with JPMorgan beating expectations as the banking giant benefited from record investment-banking fees and the release of cash set aside to cover loan losses.

Goldman Sachs also handily exceeded analysts’ estimates. Investment banking generated its second highest quarterly net revenues ever, just behind the first quarter of 2021, thanks in large part to a robust IPO market. The strong numbers in that segment offset a slowdown in Goldman’s trading business.

Although CPI came in higher than expected, a June Bank of America survey reveals most fund managers believe the global economy has reached “Peak Boom.” Month on month, 2% fewer respondents to the bank’s monthly global fund manager survey believe economic growth and inflation will rise above current predictions. Overall, 74% of fund managers still expect growth and inflation to be “above trend.”

The yield on the US 10-year Treasury gained 1.5 basis points to 1.378%.

West Texas Intermediate crude rose 0.1%, to $74.18 per barrel. Brent crude, oil’s international benchmark, increased 0.4%, to $75.43 barrel.

Gold was flat at $1,805.70 per ounce.

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S&P 500 closes at record high as FOMC minutes show little changes to rate outlook

Jerome Powell reads document while speaking in front of the Senate.
  • The S&P 500 closed at a record high on Wednesday as minutes from the last FOMC meeting signaled minimal changes to the central bank’s narrative on inflation, interest rates, and asset purchases.
  • The minutes showed officials are continuing to make progress towards reaching the threshold to scale back asset purchases.
  • The yield on the US 10-year Treasury fell as low as 1.295%, the lowest point since late February.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The S&P 500 closed at a record high on Wednesday amid falling Treasury yields as minutes from the Federal Reserve’s June meeting showed policymakers are continuing to make progress towards reaching their threshold to scaling back asset purchases.

The minutes showed that several participants are still uncertain about the outlook for growth and inflation, saying it’s “too early to draw firm conclusions about the paths of the labor market and inflation.” Fed officials also discussed tapering asset purchases but there was no consensus on the timeline.

Here’s where US indexes stood at the 4 p.m. ET close on Wednesday:

Read more: How to earn up to 100% interest on your crypto: A TikTok influencer shares 5 platforms he uses to stake bitcoin and 8 altcoins – and the interest each one offers

“We didn’t expect much from today’s FOMC Minutes, and our expectations were met. The majority of the new information delivered by the Fed was already distributed to the markets via the Summary of Economic Projections and the ‘dots’,” said economists from Jefferies.

Jefferies expects more details on the future of policy to emerge from the Fed’s meeting at Jackson Hole later this summer.

The yield on the US 10-year Treasury fell as low as 1.295%, the lowest point since late February.

The S&P 500 has hit a record closing high in eight of the past nine trading days.

Amid massive US stimulus and record high stocks, BlackRock strategists have switched to a neutral stance on US stocks while upgrading their views on European and Japanese equities, which they see as growing beneficiaries from the further reopenings of economies shut down by the COVID-19 crisis. The BlackRock Investment Institute outlined, among other items, its six to 12-month tactical views on selected assets in a mid-year report released Wednesday.

Bitcoin traded just under $35,000 on Wednesday after briefly overtaking the level.

Oil prices recovered after falling on Tuesday, despite rising sharply earlier in the day after a meeting between the OPEC+ group of oil-producing countries was abruptly called off.

West Texas Intermediate crude fell as much as 3.1%, to $71.07 per barrel. Brent crude, oil’s international benchmark, dropped 2.6%, to $72.60 per barrel, at intraday lows.

Gold climbed as much as 0.7%, to $1,810 per ounce.

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US stocks rise and bond yields fall to 5-month lows as investors await FOMC minutes for clues on inflation

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US stocks rallied back Wednesday after the S&P 500’s seven-day record-high winning streak ended the previous day amid services sector data that suggested activity peaked in June.

The Federal Reserve is set to release its minutes from its June FOMC meeting at 2 p.m. ET. Investors will be eagerly searching for clues on the central bank’s approach to inflation and its plan to taper asset purchases.

“Given the recent rate of change in yields, we suspect the market has largely priced in a less hawkish tone buried within the minutes,” Craig Johnson, Piper Sandler chief market technician said.

The yield on the US 10-year Treasury fell six basis points to 1.30%, the lowest point since late February.

Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:

US stocks kicked off the second half of 2021 with a record-setting rally, with some strategists anticipating that re-opening momentum and accommodative fiscal and monetary policy will continue to drive the stock market.

“Fear over runaway inflation has receded along with interest rates, setting up a potential passing of the baton from value to growth,” said Piper Sandler’s Johnson. “While we do not expect stocks to continue posting record-highs on a daily basis, we do believe the fundamental and technical backdrop supports a buy the dip strategy for investors.”

Bitcoin traded just under $35,000.

Oil prices recovered after falling on Tuesday, despite rising sharply earlier in the day after a meeting between the OPEC+ group of oil-producing countries was abruptly called off.

West Texas Intermediate crude rose 0.71% to $73.90 per barrel. Brent crude, oil’s international benchmark, gained 0.68%, to $75.04 per barrel.

Gold climbed 0.6% to $1,805 per ounce.

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US stocks close mostly higher to finish one of the strongest first halves of the year since 1998

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US stocks were mostly higher on Wednesday with weakness in tech stocks weighing on the Nasdaq. Wednesday marked the end of one of best first six months of the year for the S&P 500 since 1998, up 14% year-to-date.

Investors are now mulling how strong economic data will influence the Federal Reserve’s accommodative policy stance. Wednesday morning the ADP Employment report showed the US added 692,000 private payrolls in June, higher than the 600,000 expected. All eyes will be on to the Labor Department’s non-farm payrolls data for June set to be released on Friday.

Here’s where US indexes stood at the 4 p.m. ET close on Wednesday:

One of busiest week for initial public offerings this year is underway, with Didi soaring as much as 28% in its public debut Wednesday. Didi is the largest public debut for a Chinese company since Alibaba in 2014. Meanwhile, shares of LegalZoom popped as much as 39% in the first day of trading while cybersecurity company SentinelOne popped as much as 30%.

There have been 209 IPOs priced this year, a 226.6% change from the same date last year, per Renaissance Capital.

Retail trading activity in the US has cooled from its pandemic peak but still makes up 10% of stock trading volume on the Russell 3000, a broad benchmark of US stocks, according to a recent note by Morgan Stanley.

Bitcoin slipped 4% to $34,727 as the cryptocurrency struggles to rally higher amid a crackdown in China. The coin is finishing the first half of 2021 up 18%.

West Texas Intermediate crude rose 0.73%, to $73.52 per barrel. Brent crude, oil’s international benchmark, gained 0.49% to $75.13 per barrel.

Gold hovered around $1771 per ounce.

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S&P 500 closes at record high in best week since February as investors brush off inflation concerns

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

US stocks closed higher on Friday with the S&P 500 notching a record high. The benchmark index’s enjoyed its largest weekly gain since February.

Stocks pushed higher after the latest batch of economic data showed an unexpected stagnation in personal spending last month and inflation ticking higher but less than expected.

Core PCE inflation, which strips out volatile food and energy prices, jumped 0.5% in May, coming in below the median estimate of 0.6%. The gauge gained 3.4% year-over-year. The Federal Reserve uses the core measure as its primary gauge of inflation and has indicated will let inflation run above 2% for some time to facilitate a stronger labor-market recovery.

Here’s where US indexes stood at the 4 p.m. ET close on Friday:

Chris Zaccarelli, Independent Advisor Alliance chief investment officer, said the inflation data will likely not impact the Federal Reserve’s current plans for tapering and rate hikes. The most recent Fed official speeches suggest the central bank could begin a tapering plan in the next 6-12 months and raise rates as soon as 18 months from now, he said.

“Despite the change in direction of Fed policy, the current state of near-zero interest rates and $120/billion per month in asset purchases has created extremely loose financial conditions, which in conjunction with the vaccines and re-opening process, is what has allowed the stock market to hit all-time highs,” Zaccarelli added.

Bank stocks ended higher with Wells Fargo and Bank of America each up over 2% after the Federal Reserve said lenders had passed stress tests and could resume stock buybacks and dividend payments.

Nike soared as much as 15% after crushing earnings, while Virgin Galactic gained as much as 22% after gaining FAA approval to fly customers to space.

Bitcoin hovered around $32,000. Guggenheim’s Scott Minerd said the cryptocurrency could grind lower to around $15,000 before bottoming. He said investors shouldn’t rush in now.

West Texas Intermediate crude was up 0.9% to $73.97 per barrel. Brent crude, oil’s international benchmark, gained 0.8%, to $76.21 per barrel, at intraday highs.

Gold climbed 0.10% to $1778.50 per ounce.

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Nasdaq closes at a record as Fed’s Powell reiterates that rising inflation is transitory

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US stocks ticked higher after the Federal Reserve chair reiterated his outlook that inflationary pressures will be transitory. In a testimony to the House Select Subcommittee Tuesday, Jerome Powell suggested that he had no fears that prices will come down, but it’s hard to say when bottlenecks are going to disappear. He also said that strong job creation should arrive in the fall.

Almost every sector in the S&P 500 ended in the green, while Microsoft hit a $2 trillion market cap for the first time ever. It’s the second-largest public company by market capitalization behind Apple ($2.3 trillion). Gains in tech stocks propelled the Nasdaq to a record closing high.

Here’s where US indexes stood at the 4 p.m. ET close on Tuesday:

The cryptocurrency space continued to tumble. Bitcoin hit its lowest point since January before picking back up $32,000. t’s now facing a make-or-break moment at the key technical support level of $30,000. Ether dropped 14% on Tuesday to a 24-hour low of $1,732.85, Ripple’s XRP dropped nearly 25%, and dogecoin has fallen 47% in the last seven days.

Meanwhile, investors’ view towards cryptocurrencies remains extremely polarized, according to a survey conducted by JPMorgan. The survey found that 51% of the investors believe cryptocurrencies are here to stay, while 49% of survey respondents believe cryptocurrencies are either “rat poison” (33%) or a temporary fad (16%).

A return to 1970s-style inflation is unlikely given deeper deflationary impulses, saidBridgewater co-CIO Bob Prince in a recent interview. The head of the world’s biggest hedge fund expects future months will bring some “moderate” inflation, rather than the double-digit price hikes that pummeled America in the 1970s.

West Texas Intermediate crude fell 0.79% to $73.08 per barrel. Brent crude, oil’s international benchmark, jumped above $75 a barrel for the first time in two years this morning. It now sits at $74.90.

Gold slipped 0.17% to $1,779.80 per ounce.

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US stocks trade mixed as investors await inflation outlook from the Fed

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US stocks were mixed Wednesday as investors paused before a key decision by the Federal Reserve coming later in the day.

The Federal Open Market Committee is expected to hold interest rates unchanged and announce no changes to its asset purchases when the decision is released at 2 p.m ET. Robertson Stephens Wealth Management chief economist Jeanette Garretty expects the central bank to continue to avoid announcing a concrete plan to change its bond-buying program.

“This FOMC meeting is likely to be the most important step, signaling to markets that the reduction of QE is conclusively on the discussion agenda, while avoiding any indication of ‘when’ or ‘how,'” she said. “I believe that economic conditions allow, perhaps require, the Fed to scale back QE but I believe that the Fed wishes to still keep this action firmly in ‘maybe’ territory. As such, the wordsmithing of the meeting announcements will be considerable – and tricky.”

Here’s where US indexes stood at the 9:30 a.m. ET open on tk:

The Fed is also expected to speak on the state of the US economy.

“In the last meeting, there was an expression of cautious optimism. In this meeting, I would expect the language to be more one of confirmed optimism, albeit continuing to emphasize the still-large number of unemployed and partially employed and the incomplete vaccination of the population. Investors may be looking for some statement regarding inflation, but I believe the Fed will maintain its viewpoint that current price pressures are transitory,” Garretty added.

Michael Burry is back on Twitter and warning of the biggest market bubble in history. It seems Burry’s concerns only grew during his 10-weak hiatus from Twitter.

Initial public offerings in the US this year have already broken 2020’s record with six months still go in the year. In the first half of this year alone, IPOs have raised $171 billion, surpassing last year’s record $168 billion, with the help of the Federal Reserve’s low interest rate policies.

The low rate environment has also helped the rise of mergers and acquisitions activity, said Goldman Sachs global head of M&A structuring. In a Monday interview, David Dubner he is seeing no signs of stopping for a “superbloom” of M&A activity and separation activity.

West Texas Intermediate crude paused its rally and was down 0.2% to $71.98. Brent crude, oil’s international benchmark, climbed 0.6%, to $74.73 per barrel, at intraday highs.

Gold climbed as much as 0.1%, to $1,863 per ounce.

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