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U.S. stock markets closed sharply higher on Tuesday following strong second-quarter earnings results of major banks. Weak economic data also boosted market participants sentiment that the Fed may relax tight monetary policies. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.1% or 366.58 points to close at 34,951.93, marking its highest closing since April 2022. Notably, 21 components of the 30-stock index ended in positive territory, while 9 in negative zone. The blue-chip index posted seventh consecutive winning days for the first time since March 2021.
The tech-heavy Nasdaq Composite finished at 14,353.64, advancing 0.8% or 108.69 points due to strong performance of large-cap technology stocks. The tech-laden index recorded its highest closing since April 2022.
The S&P 500 gained 0.7% to end at 4,554.98. The broad-market index registered its highest closing since April 2022. Eight out of 11 broad sectors of the benchmark ended in positive zone while three finished in negative territory. The Technology Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Energy Select Sector SPDR (XLE) advanced 1.1%, 1.1% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 1.3% to 13.30. A total of 10.54 billion shares were traded on Tuesday, lower than the last 20-session average of 10.58 billion. Advancers outnumbered decliners on the NYSE by a 2.76-to-1 ratio. On Nasdaq, a 1.62-to-1 ratio favored advancing issues.
Strong Q2 Earnings Results
Bank of America Corp. (BAC - Free Report) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.84 per share. The company posted revenues of $25.2 billion, surpassing the Zacks Consensus Estimate by 0.93%.
Morgan Stanley’s (MS - Free Report) second-quarter 2023 earnings of $1.24 per share surpassed the Zacks Consensus Estimate of $1.14. Net revenues were $13.46 billion, up 2% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $12.76 billion.
Bank of New York Mellon Corp. (BK - Free Report) came out with second-quarter 2023 adjusted earnings of $1.38 per share, surpassing the Zacks Consensus Estimate of $1.22. Total revenues increased 5% year over year to $4.45 billion. The top line surpassed the Zacks Consensus Estimate of $4.38 billion.
The Department of Commerce reported that retail sales in June increased 0.2% month-over-month, missing the consensus estimate of 0.5%. May’s data was revised upward from a month-over-month increase of 0.3% to 0.5%. Year over year, retail sales increased 1.5% in June.
Core retail sales (excluding auto) in June increased 0.2% month-over-month, lagging the consensus estimate of 0.3%. May’s data was revised upward from a month-over-month rise of 0.1% to 0.3%.
The Federal Reserve reported that industrial production decreased 0.5% month-over-month in June in contrast to the consensus estimate of an increase of 0.2%. May’s data was revised downward from a month-over-month decrease of 0.2% to 0.5%. However, year over year, industrial production rose 0.7% in second-quarter 2023.
Capacity Utilization in June came in at 78.9%, missing the consensus estimate of 79.5%. May’s data was revised marginally downward to 79.4% from 79.6%.
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Stock Market News for Jul 19, 2023
U.S. stock markets closed sharply higher on Tuesday following strong second-quarter earnings results of major banks. Weak economic data also boosted market participants sentiment that the Fed may relax tight monetary policies. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.1% or 366.58 points to close at 34,951.93, marking its highest closing since April 2022. Notably, 21 components of the 30-stock index ended in positive territory, while 9 in negative zone. The blue-chip index posted seventh consecutive winning days for the first time since March 2021.
The tech-heavy Nasdaq Composite finished at 14,353.64, advancing 0.8% or 108.69 points due to strong performance of large-cap technology stocks. The tech-laden index recorded its highest closing since April 2022.
The S&P 500 gained 0.7% to end at 4,554.98. The broad-market index registered its highest closing since April 2022. Eight out of 11 broad sectors of the benchmark ended in positive zone while three finished in negative territory. The Technology Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF) and the Energy Select Sector SPDR (XLE) advanced 1.1%, 1.1% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 1.3% to 13.30. A total of 10.54 billion shares were traded on Tuesday, lower than the last 20-session average of 10.58 billion. Advancers outnumbered decliners on the NYSE by a 2.76-to-1 ratio. On Nasdaq, a 1.62-to-1 ratio favored advancing issues.
Strong Q2 Earnings Results
Bank of America Corp. (BAC - Free Report) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.84 per share. The company posted revenues of $25.2 billion, surpassing the Zacks Consensus Estimate by 0.93%.
Morgan Stanley’s (MS - Free Report) second-quarter 2023 earnings of $1.24 per share surpassed the Zacks Consensus Estimate of $1.14. Net revenues were $13.46 billion, up 2% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $12.76 billion.
Bank of New York Mellon Corp. (BK - Free Report) came out with second-quarter 2023 adjusted earnings of $1.38 per share, surpassing the Zacks Consensus Estimate of $1.22. Total revenues increased 5% year over year to $4.45 billion. The top line surpassed the Zacks Consensus Estimate of $4.38 billion.
Consequently, shares of Bank of America, Morgan Stanley and Bank of New York Mellon climbed 4.4%, 6.5% and 4.1%, respectively. All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Commerce reported that retail sales in June increased 0.2% month-over-month, missing the consensus estimate of 0.5%. May’s data was revised upward from a month-over-month increase of 0.3% to 0.5%. Year over year, retail sales increased 1.5% in June.
Core retail sales (excluding auto) in June increased 0.2% month-over-month, lagging the consensus estimate of 0.3%. May’s data was revised upward from a month-over-month rise of 0.1% to 0.3%.
The Federal Reserve reported that industrial production decreased 0.5% month-over-month in June in contrast to the consensus estimate of an increase of 0.2%. May’s data was revised downward from a month-over-month decrease of 0.2% to 0.5%. However, year over year, industrial production rose 0.7% in second-quarter 2023.
Capacity Utilization in June came in at 78.9%, missing the consensus estimate of 79.5%. May’s data was revised marginally downward to 79.4% from 79.6%.