Wall Street Close: Benchmarks refresh record top to kick-start key week
- US equities offer positive start to the week amid earnings optimism.
- S&P 500, Nasdaq refresh record tops, DJI marked all-time high closing.
- US CPI, results from Goldman, JPM eyed, covid concerns are important too.
Shares markets in the US provided an upbeat start to the crucial week amid hopes of better company results as the Q2 earnings season begins. Also on the positive side could be the Fed chatters supporting easy money amid a light calendar. Even so, the coronavirus (COVID-19) concerns and fears of strong inflation data pushing the Fed towards tapering probe market bulls around record tops.
That said, Dow Jones Industrial Average (DJI) marks the highest daily closing around 34,996.18, up 126 points or 0.36%. On the other hand, S&P 500 and Nasdaq jump to new all-time tops of 4,386.68 and 14,761.10, before closing around 4,385 and 14,733 respectively.
Gradual economic reopening backs the optimism towards upcoming quarterly earnings while comments from New York Federal Reserve President John Williams offered additional strength to the bulls during a quiet day. “The US economy has not achieved the 'substantial further progress' set by the US Federal Reserve to start reducing asset purchases,” said Fed’s Williams.
The virus numbers escalate in the Northern hemisphere, challenging the unlock plans, whereas the doubts over the J&J vaccine, add to the market’s worries. Politico cites the US Food and Drug Administration (FDA) to say that there have been 100 preliminary reports of Guillain-Barre syndrome from 12.8m doses administered of the JNJ vaccine.
The company-specific news favored L Brands after the firm conveyed the board’s approval to spin-off Victoria’s Secret while Elon Musk’s testimony to defend the 2016 acquisition of SolarCity impressed bulls. Further, Walt Disney cheered the success of Marvel's "Black Widow" while Marvel's "Black Widow" slumped 17% on comments of selling up to $500 million worth of shares.
Moving on, US Consumer Price Index for June will be important to watch even as the Fed policymakers remain broadly in support of keeping the monetary policy intact. Also crucial will be the key earnings from Goldman Sachs and JP Morgan Chase. Above all, Fed Chair Powell’s testimony on Tuesday could offer meaningful direction to the markets.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
