US Stocks Finish Slightly Higher 07/26 16:18
Wall Street capped a wobbly day for stocks with modest gains Monday, nudging
the major indexes further into record territory.
(AP) -- Wall Street capped a wobbly day for stocks with modest gains Monday,
nudging the major indexes further into record territory.
The S&P 500 shrugged off an early slide and gained 0.2%. Consumer-oriented
companies, banks and energy and communications stocks helped lift the market.
Those gains were kept in check by a pullback in health care and technology
companies. Treasury yields mostly rose.
The modest gains follow a turbulent week for the market. A week ago, stocks
fell sharply amid worries that fast-spreading variants of the coronavirus could
threaten the economic recovery. But the swoon was short-lived, and the major
stock indexes rallied to record highs on Friday.
Trading was more muted Monday, as investors monitored a steady flow of
corporate earnings and looked ahead to Wednesday, when the Federal Reserve is
due to deliver an update on the economy and its interest rate policy.
Traders will be listening for clues as to when the central bank might start
winding down its extraordinary support measures for the economy and how
concerned it is about inflation.
"The mood still revolves around inflation and whether it is transitory or
not," said Keith Buchanan, senior portfolio manager at Globalt Investments.
The S&P 500 rose 10.51 points to 4,422.30. The Dow Jones Industrial Average
gained 82.76 points, or 0.2%, to 35,144.31. The Nasdaq composite added 3.72
points, or less than 0.1%, to 14,840.71.
Smaller companies fared slightly better than the broader market. The Russell
2000 index rose 7.27 points, or 0.3%, to 2,216.92.
Cruise lines, hotels and retailers were among the winners. Carnival rose
5.5%, Caesars Entertainment added 3.3% and Gap rose 3%. Among stocks that lost
ground: Drugmaker Moderna slid 3.7% and chipmaker Nvidia fell 1.4%.
Treasury yields mostly rose. The yield on the 10-year Treasury rose to 1.30%
from 1.28% late Friday. The yield, which is a benchmark for interest rates on
mortgages and other consumer loans, has been mostly falling amid increasing
unease over the economy since climbing to about 1.75% in late March.
Chinese technology companies slipped as China increases restrictions on
them. China's industry ministry announced a 6-month campaign to clean up what
it says are serious problems with internet apps violating consumer rights,
cyber security and "disturbing market order." Internet giant Tencent's
U.S.-listed shares slid 10% following orders by regulators to end exclusive
contracts with music copyright holders.
The announcement pulled most indexes in Asia lower. Hong Kong's Hang Seng
sank 4.1%, marking its biggest drop in more than a year, and the Shanghai
Composite index fell 2.3%.
A wide range of companies reported earnings. While the results have been
mostly solid, Wall Street's reaction has been mixed. Elevator maker Otis rose
just 0.6%, despite reporting solid financial results, while toymaker Hasbro
jumped 12.2% for the biggest gain in the S&P 500 after handily beating
analysts' profit forecasts.
Investors are awaiting earnings reports from several large companies this
week. Google's parent company, Alphabet, will report earnings Tuesday, along
with Apple and Microsoft. Pfizer and Boeing report their results on Wednesday.
Electric vehicle company Lucid Motors, now dubbed Lucid Group, rose 10.6% in
its public debut after being bought by blank-check company Churchill Capital
The price of Bitcoin rose about 9% to $37,500, according to Coindesk. Amazon
is reportedly considering accepting it as payment and considering its own
cryptocurrency for purchases.