Wall Street Close: Upbeat earnings, US data recall bulls

2 months ago 24
US equity benchmarks post mild gains as US data backed Fed’s resistance to taper. US Q2 GDP missed strong forecasts but consumption details are firmer, housing cools. Amazon flashed mixed earnings but Ford, Yum Brands and Align Technologies pleased bulls.

Wall Street regains upside momentum, though mildly, on Thursday after the key US statistics justify the Fed’s little inclination to taper and keep the easy money flowing. Also backing the mood could be the upbeat earnings and chatters over President Joe Biden’s infrastructures spending bill.

The preliminary readings of the US Q2 GDP slipped beneath 8.5% QoQ forecasts to 6.5%, versus 6.4% prior, but consumer spending remained very strong. Further, Pending Home Sales for June eased and weekly Jobless Claims also jumped, suggesting the need for further stimulus even as the economy is improving. Elsewhere, US Senators are haggling over the $1.2 trillion infrastructure spending plan after allowing it to be discussed in the House, paving way for the much-awaited stimulus following multiple days of a delay.

Against this backdrop, Dow Jones Industrial Average (DJI) adds to 150 points of 0.44% to end the day around 35,084 whereas the S&P 500 prints 0.42% daily gains to mark 4,419 as of Thursday’s closing, after refreshing the record top with 4,429.97 level. The tech-heavy Nasdaq gains 0.11% intraday, up 15.7 points, to 14,778 by the press time.

It’s worth noting that the equity benchmarks ignored a jump in the US Treasury yields to return to gains on Thursday. That said, the US 10-year Treasury yields gained three basis points to 1.266% by the end of the North American session.

Talking about earnings, Amazon missed revenue targets and joined PayPal to drop but Ford Motor Company, KFC owner Yum Brands and Align Technologies kept the market’s overall optimism intact. It’s worth noting the shares of Tesla and Apple helped Nasdaq to remain mildly bid.

Looking forward, second-tier US data may offer little entertainment to the US share traders on Friday but talks over the infrastructures spending and covid restrictions could be the catalysts to follow.

Read: Forex Today: Persistent pressure on the dollar

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