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Wall Street ended modestly higher on Monday to close out a winning July. Investors continued to show faith in the Fed’s narrative that the U.S. economy would be able to avoid a recession. Energy prices drove the market. All three major indexes ended slightly in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% or 100.24 points to close at 35,559.53. Seventeen components of the 30-stock index ended in positive territory, while 13 ended in the negative.
The S&P 500 gained 0.2%, or 6.73 points, to close at 4,588.96. Eight of the 11 broad sectors of the benchmark index ended in positive territory. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Consumer Discretionary Select Sector SPDR (XLY) progressed 1.9%, 0.8% and 0.6%, respectively, while the Health Care Select Sector SPDR (XLV) receded 0.8%.
The tech-heavy Nasdaq advanced 29.37 points, or 0.2%, to finish at 14,346.02.
The fear-gauge CBOE Volatility Index (VIX) was up 2.3% at 13.63. A total of 11.1 billion shares were traded on Monday, lower than the last 20-session average of 10.5 billion. Advancers outnumbered decliners on the NYSE by a 2.69-to-1 ratio. On the Nasdaq, a 1.83-to-1 ratio favored advancing issues.
Energy Prices Drive the Market
The market seemed to operate in a holding pattern on Monday without any meaningful catalysts that would sway trade to either side. The energy sector, however, emerged as the single biggest winner in the session, driving most of the day’s gains.
The OPEC+ is keeping the energy market tight. While there is no dearth of demand, oil inventories are going down, and production is being controlled, thereby impacting oil price. It is widely expected that Saudi Arabia will continue to cut output by 1 million barrels per day till September. This led to oil prices rallying to a fresh three-month high on Monday.
Brent crude rose $1.02, or 1.2%, to settle at $85.43/barrel. WTI crude rose $1.22, or 1.5%, to $81.80/barrel. For both benchmarks, Monday’s price level was the highest since late April.
The three most widely followed indexes closed out July with significant gains. The S&P 500 jumped 3.1% to register five straight gaining months for the first time since its seven-month winning streak, which ended in August 2021. The Dow added 3.4%, which includes a 13-day winning streak ending last week. The tech-heavy Nasdaq Composite gained about 4.1% and posted its fifth straight winning month for the first time since April 2021.
In recent weeks, investor sentiment has hovered around the possibility that a soft landing of the economy may be achieved, and recession talks have taken a backseat. Economic data released through last month continued to show strength in the labor market and cooling inflation. Second-quarter earnings numbers posted by mega-cap tech and other companies have also been encouraging, or, at least, better than expected. Even as the Fed raised interest rates by a much anticipated 25 bps in July and did not promise an end to rate hikes anytime soon, investor mood remains upbeat.
No economic data was released on Monday.
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Stock Market News for Aug 1, 2023
Wall Street ended modestly higher on Monday to close out a winning July. Investors continued to show faith in the Fed’s narrative that the U.S. economy would be able to avoid a recession. Energy prices drove the market. All three major indexes ended slightly in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% or 100.24 points to close at 35,559.53. Seventeen components of the 30-stock index ended in positive territory, while 13 ended in the negative.
The S&P 500 gained 0.2%, or 6.73 points, to close at 4,588.96. Eight of the 11 broad sectors of the benchmark index ended in positive territory. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Consumer Discretionary Select Sector SPDR (XLY) progressed 1.9%, 0.8% and 0.6%, respectively, while the Health Care Select Sector SPDR (XLV) receded 0.8%.
The tech-heavy Nasdaq advanced 29.37 points, or 0.2%, to finish at 14,346.02.
The fear-gauge CBOE Volatility Index (VIX) was up 2.3% at 13.63. A total of 11.1 billion shares were traded on Monday, lower than the last 20-session average of 10.5 billion. Advancers outnumbered decliners on the NYSE by a 2.69-to-1 ratio. On the Nasdaq, a 1.83-to-1 ratio favored advancing issues.
Energy Prices Drive the Market
The market seemed to operate in a holding pattern on Monday without any meaningful catalysts that would sway trade to either side. The energy sector, however, emerged as the single biggest winner in the session, driving most of the day’s gains.
The OPEC+ is keeping the energy market tight. While there is no dearth of demand, oil inventories are going down, and production is being controlled, thereby impacting oil price. It is widely expected that Saudi Arabia will continue to cut output by 1 million barrels per day till September. This led to oil prices rallying to a fresh three-month high on Monday.
Brent crude rose $1.02, or 1.2%, to settle at $85.43/barrel. WTI crude rose $1.22, or 1.5%, to $81.80/barrel. For both benchmarks, Monday’s price level was the highest since late April.
Consequently, shares of Devon Energy Corporation (DVN - Free Report) and Chevron Corporation ((CVX - Free Report) ) rose 1.9% and 3%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Monthly Roundup
The three most widely followed indexes closed out July with significant gains. The S&P 500 jumped 3.1% to register five straight gaining months for the first time since its seven-month winning streak, which ended in August 2021. The Dow added 3.4%, which includes a 13-day winning streak ending last week. The tech-heavy Nasdaq Composite gained about 4.1% and posted its fifth straight winning month for the first time since April 2021.
In recent weeks, investor sentiment has hovered around the possibility that a soft landing of the economy may be achieved, and recession talks have taken a backseat. Economic data released through last month continued to show strength in the labor market and cooling inflation. Second-quarter earnings numbers posted by mega-cap tech and other companies have also been encouraging, or, at least, better than expected. Even as the Fed raised interest rates by a much anticipated 25 bps in July and did not promise an end to rate hikes anytime soon, investor mood remains upbeat.
No economic data was released on Monday.