Wall Street rallies as Dow closes at record on Iran talks optimism | Honolulu Star-Advertiser
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Wall Street rallies as Dow closes at record on Iran talks optimism
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REUTERS/JEENAH MOON
Traders work on the floor of the New York Stock Exchange in New York City today. U.S. stocks kicked off August on a strong note today to send the Dow Jones Industrial Average to a record high close, as signs of de-escalating U.S.-Iran tensions pulled down oil prices and Treasury yields in a busy week for earnings and economic data
NEW YORK >> U.S. stocks kicked off August on a strong note today to send the Dow Jones Industrial Average to a record high close, as signs of de-escalating U.S.-Iran tensions pulled down oil prices and Treasury yields in a busy week for earnings and economic data
Crude prices settled down about 5% after President Donald Trump said on Sunday that talks with Iran to reopen the Strait of Hormuz would take place today, though Iran disputed that talks were planned
The drop in oil prices helped push U.S. Treasury yields lower, even as market participants continued to gauge the odds of a rate hike from the Federal Reserve should the conflict continue for a prolonged period
Communication services was the best performing of the 11 major S&P sectors, climbing 4.3% on the back of gains from Meta Platforms and Alphabet. Energy dropped 1.2% as the worst performer of the session
“Every day, everybody wakes up and looks at the price of a barrel of oil and the yield on the 10-year, and if that’s going lower, the market’s OK, and if it’s going higher, the market’s not good whatsoever,” said Art Hogan, chief market strategist at B. Riley Wealth in Boston. “Typically earnings are a time that give us a chance to forget about disturbing macro influences, but this go around has not been one of those times.”
Earnings have been strong this quarter, showing a 29.3% growth rate from the 304 companies in the S&P 500 that have reported earnings through Friday, according to data from LSEG, with 85.2% topping analyst expectations
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Amazon shares advanced 4.6% as the company’s market cap surpassed $3 trillion for the first time after its earnings results last week
SpaceX, which will report on Tuesday its first quarterly results since going public, jumped 5.6%. The stock has been trading below its $135 issue price for nearly three weeks after its debut in mid-June
Other companies with artificial intelligence ties that are scheduled to report this week include Advanced Micro Devices and data storage companies SanDisk and Western Digital
The Dow Jones Industrial Average rose 693.38 points, or 1.32%, to 53,178.41, the S&P 500 gained 110.78 points, or 1.48%, to 7,600.50 and the Nasdaq Composite gained 540.04 points, or 2.13%, to 25,913.90
Stocks struggled in July partly due to global concerns about artificial intelligence trajectories, the U.S.-Iran conflict and the path of interest rates from the Fed
Bristol Myers Squibb shares edged up 0.2% after a report of preliminary merger talks with AstraZeneca. A deal could form one of the world’s biggest drugmakers, worth nearly $400 billion
Hotel operator Marriott <a href="https://todaytrendnews7.com/doctoral-graduate-takes-eating-disorders-to-international-stage/” title=”Doctoral graduate takes eating disorders to international stage”>International slumped 7% after forecasting third-quarter profit below expectations
New York Federal Reserve President John Williams expressed optimism that inflation pressures would ease gradually. A report last week that U.S. Fed Chair Kevin Warsh raised the idea of scheduling fewer rate-setting meetings added to concerns about less clarity around the central bank
Markets are pricing in a 64.5% chance for a rate hike of at least 25 basis points at the Fed’s September meeting, according to the CME FedWatch tool
Investors will receive several readings on the labor market this week, culminating with the government jobs report on Friday
Advancing issues outnumbered decliners by a 2.62-to-1 ratio on the NYSE and by a 3.01-to-1 ratio on the Nasdaq
The S&P 500 posted 15 new 52-week highs and one new low while the Nasdaq Composite recorded 121 new highs and 96 new lows. Volume on U.S. exchanges was 19.36 billion shares, compared with the 17.66 billion average for the full session over the last 20 trading days
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