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.

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 pressured amid downbeat data, covid concerns

EUR/USD is trading well below 1.18 and down on the day. Markit's US Services PMI missed estimates with 59.8, souring sentiment. Worries about covid provide some support to the safe-haven dollar. The ECB's dovish decision pressures the euro.


GBP/USD hovers around 1.3750 amid after mixed UK data

GBP/USD is holding above 1.3750, clinging to this level after UK Retail Sales beat estimates but Markit's PMIs missed on both sides of the pond. Covid headlines are eyed.


XAU/USD eyes a sustained move below key $1799 support

Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks, as the US dollar remains at the highest levels in three months.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more