Wall Street Close: Mildly bid on upbeat earnings, US GDP, S&P 500 refreshes record top
|- US equities end higher as strong earnings from tech giants back the bulls.
- Pullback in US Treasury yields, US dollar also favored equities near closing.
- Second-tier US data, Exxon Mobil results eyed for fresh impulse.
Despite the initial weakness, the US stock markets end higher with all three benchmarks posting gains for the first time in the week. The hopes of more stimulus, led by US President Joe Biden’s ‘Joint Congress’ speech, joined strong US Q1 GDP and upbeat earnings from Amazon and Twitter to back the bulls of late. It should, however, be noted that the reflation fears restrict equity gains by the end of Thursday’s North American session.
Against this backdrop, Dow Jones Industrial Average (DJI30) becomes the biggest gainer of the day, up 239.98 points or 0.71%, whereas S&P 500 came in second, respite refreshing record top to 4,218.78, with the daily jump of 0.68%, or 28.29 points. Further, Nasdaq adds 31.52 points or 0.22% to end the day near 14,080.
Amazon reported $108.5 billion in revenues, versus the $104.56 billion forecasts, whereas Twitter marked a minor increase from $1.03 billion market consensus to $1.04 billion for Q1 2021. Gilead turned out as a spoiler with $6.42 billion revenues and $2.08 adjusted EPS versus $6.74 billion and $2.07 respective expectations.
The preliminary readings of US Q1 2021 GDP came better than the 6.0% forecast to 6.4%, versus 4.3% prior. Though, a jump in the Weekly Jobless Claims and mixed housing data seemed to have tested the bulls.
Also on the negative side could be fears of relation as the Fed’s refrain from talking tapering contrasts with multi-year high inflation expectations and strong data, not to forget hopes of more stimulus.
Amid these plays, US 10-year Treasury yields jumped to a 13-day top before easing with 2.21 basis points (bps) of intraday gains whereas the US dollar index (DXY) bounced off a two-month low.
Looking forward, given the key technology companies’ results already being out and loud and earnings calendar has Exxon Mobil as important readings to watch. On the other hand, US Personal Income and Personal Spending will join the second reading of Michigan Consumer Confidence and Chicago Purchasing Managers’ Index to entertain the traders amid a likely dull day ahead.
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