Wall Street Close: Another positive day on strong earnings


  • US stocks post gains amid economic optimism, upbeat earnings.
  • Chipotle Mexican Grill becomes the gainer of the day, Netflix dropped.
  • US policymakers jostle over infrastructure spending bill, budget.
  • ECB, covid headlines and weekly US Jobless Claims will be crucial for fresh impulse.

Wall Street had another upbeat session as firmer company results renewed market optimism amid a light calendar on Wednesday. In doing so, investors shrugged off the coronavirus woes as well as uncertainty over the US President Joe Biden’s infrastructure spending bill and budget.

Among the top-notch earnings, Chipotle Mexican Grill, Verizon Communications and Interpublic Group were the gainers. On the contrary, Netflix had to bear the burden of late Tuesday’s results whereas United Airlines reacted to the positive results conveyed the previous day. Additionally, Bank of American raised quarterly cash dividend by 17% whereas Whirlpool also marked firmer revenue and EPS figures for Q2 2021.

Amid these plays, Dow Jones Industrial Average (DJI) gained 0.83% or 286 points to 34,798 whereas S&P 500 added 35 points to end the day around 4,358. Above all, Nasdaq led the run-up with a 0.92% daily gain, or 133 points, before closing around 14,632.

US Treasury yields also followed the suit and rose for the second consecutive day to regain 1.23% by the end of the North American session of Wednesday.

Although the coronavirus woes remain on the table, with multi-day high numbers in Australia and fears of Delta covid variant spread in the West, policymakers seem to be positive over tackling the pandemic. This is somewhat on the line of World Health Organisation (WHO) head Tedros Adhanom Ghebreyesus who said, per Reuters, “The world's leading economies could bring the covid-19 pandemic under control in months.”

On the other hand, the US spending deadlines are inching closer and the policymakers are pushed to discuss a fresh budget to avoid government office closure. However, the diplomats are yet to mark any progress on the same, not to forget flashing mixed signals over the infrastructure spending bill with initial block to opening debate.

Looking forward, the pre-ECB trading lull may bore the markets but the covid updates and stimulus news can offer intermediate moves. Also in the pipeline were the second-tier data like weekly US Jobless Claims, Chicago Fed National Activity Index and US Existing Home Sales figures.

While the ECB may have to reiterate the bearish bias to disappoint the equity bulls, the scheduled data may offer little direction to the markets.

 

Read: Forex Today: Dollar eases, ECB looms

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends gains beyond 1.1820 after mixed US data

EUR/USD has extended its gains above 1.1820 after Durable Goods Orders missed expectations but the CB Consumer Confidence exceeded them. US yields are on the backfoot. Covid and infrastructure headlines are eyed.

EUR/USD News

GBP/USD soars toward 1.39 on UK covid optimism, dollar weakness

GBP/USD is trading close to 1.39, surging higher. The pound benefits from the drop in British covid cases while the dollar turned down after rising earlier. The US published mixed data.

GBP/USD News

Gold battles $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Crypto markets bleed after Amazon denies rumors; uptrend intact

Bitcoin price is experiencing a pullback after rallying 38% to tag $40,000. Ethereum price promptly follows BTC as it eyes a retracement to the $2,018 support level.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures