The US market continues its upward streak today, with strong results announced by Amazon and Apple boosting trading, offsetting another jump in inflation indices.
In particular, the industrial index Dow Jones moving upward 0.4% at 32,660 unitsthe enlarged S&P 500 makes profits 1% and traded on 4,112 unitswhile the tech-weighted Nasdaq jumps 1.4% moving on 12,327 units.
At the same time, the three indexes are on track to complete their second consecutive strong week, with the Dow up nearly +2% on the five-day and the S&P 500 and Nasdaq up +2.8% each.
Performance is even better for the month as a whole, with the Dow up over 5% in July, its best performance since March 2021, while the S&P 500 is up +7.5% and the Nasdaq is up over + 10%, with both indexes on track to complete their best month since November 2020.
As mentioned above, the upward momentum of the market is given a strong boost today by the giants of the technology industry Amazon and Apple, which both exceeded the estimates of the analysts in the quarterly results they announced after the end of yesterday’s session.
In particular, Amazon reported revenue that far exceeded market estimates, but mostly gave an extremely bullish outlook and sees its stock rallying strongly by 10.6%.
Apple followed closely behind with a 3.4% jump after it saw profit and revenue beat market estimates as demand for its flagship iPhone remained extremely strong despite pressures from consumer inflation.
At the same time, Chevron reported its biggest quarterly profit in its history and rose more than 6%, as did ExxonMobil, which rose 3% after reporting a record profit of $17.85 billion in the quarter.
In contrast, Intel reported lower-than-expected results for the second quarter and its stock sank 10%.
Even greater pressure is on Roku stock, which is down -26.8% after it missed market estimates and downgraded its outlook for the year.
Elsewhere, investors are weighing in on yet another piece of negative macroeconomic news, as after yesterday’s unexpected GDP contraction of 0.9%, it was reported today that the Federal Reserve’s preferred gauge of inflation jumped again in June, defying hopes that the price rally has peaked.
Specifically, the personal consumption expenditure index rose 1% in June from the previous month, with the structural index excluding food and energy increasing 0.6%
The data beat analysts’ estimates of a 0.9% and 0.5% month-on-month rise, respectively.
Thus, the index climbed to 6.8% annually, recording their highest reading since January 1982.
For his part, Atlanta Federal Reserve President Rafael Bostic said today that the Fed should continue to raise interest rates to control inflation, but the pace and final level will be largely shaped by the data of the next two months.
A position that echoes that expressed by the bank’s president, Jerome Powell, on Wednesday, after the second consecutive increase in interest rates by 0.75%, greatly revitalizing the investment mood.
Finally, in the rest of the day’s macroeconomic news, the employment cost index rose 1.3% last quarter after accelerating 1.4% in the January-March period.
On a year-on-year basis, labor costs rose 5.1% after rising 4.5% in the first quarter, remaining well below the pace of inflation hovering around 9%.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
