We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed higher on Monday after a choppy trading session supported by strong performance of chip stocks. Market participants were busy weighing weak economic data. The second quarter 2023 earnings of the major retailers are also in key watch list in order to gauge the magnitude of consumer spending. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose less than 0.1% to close at 35,307.63, marking its three straight positive closing. Notably, 13 components of the 30-stock index ended in positive territory, while 17 in negative zone. The tech-heavy Nasdaq Composite finished at 13,788.33, gaining 1.1% or 143.48 points due to strong performance of large-cap technology stocks.
The S&P 500 rose 0.6% to end at 4,488.72. Six out of 11 broad sectors of the benchmark ended in positive zone while five finished in negative territory. The Technology Select Sector SPDR (XLK) advanced 1.6%, while the Utilities Select Sector SPDR (XLE) dropped 0.8%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.1% to 14.82. A total of 9.7 billion shares were traded on Monday, lower than the last 20-session average of 10.9 billion. The S&P 500 posted eight new 52-week highs and 11 new 52-week lows. The Nasdaq Composite registered 50 new 52-week highs and 192 new 52-week lows.
Weak Economic Data
The Department of Labor reported that the producer price index (PPI) increased 0.3% month-over-month in July, higher-than-the consensus estimate of 0.2%. June’s data was revised downward to remain flat with May compared with an increase of 0.1% reported earlier. Year over year, PPI rose 0.8% in July. Core PPI (excluding volatile food, energy, and trade services) increased 0.2% month-over-month in July, marking its highest increase since February. Year over year, core PPI increased 2.7% in July.
The University of Michigan reported that the preliminary reading of consumer sentiment came in at 71.2 in August, missing the consensus estimate of 72. The final reading of July was 71.6, marking a 22-month high. The sub-index for current condition rose to 77.4 in August from 76.6 in July. The sub-index for expectations fell to 67.3 in August from 68.3 in July.
Semiconductor Stocks Rebound
Following weak economic data, yields on several key U.S. government bonds spiked on Friday. That resulted in a sharp decline of several chip stocks share prices. However, this sector rebounded on Monday. The VanEck Semiconductor ETF (SMH) was up 3%.
We are in the last leg of the second-quarter 2023 earnings season. So far, earnings results are not great but they are not bad either. Moreover, the outlook given by companies that have already reported is far better than expected.
As of Aug 11, 457 S&P 500 companies reported earnings results. Total earnings of these companies are down 9.5% year-over-year on 0.5% higher revenues. Of these, 79% surpassed EPS estimates while 65.2% outpaced revenue estimates.
At present, our estimate has shown that the total earnings of the S&P 500 Index will likely decline 8.2% year-over-year on 0.8% higher revenues. The second-quarter earnings decline would follow the 3.4% decline in the first quarter and a 5.4% drop in fourth-quarter 2022.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Aug 15, 2023
U.S. stock markets closed higher on Monday after a choppy trading session supported by strong performance of chip stocks. Market participants were busy weighing weak economic data. The second quarter 2023 earnings of the major retailers are also in key watch list in order to gauge the magnitude of consumer spending. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose less than 0.1% to close at 35,307.63, marking its three straight positive closing. Notably, 13 components of the 30-stock index ended in positive territory, while 17 in negative zone. The tech-heavy Nasdaq Composite finished at 13,788.33, gaining 1.1% or 143.48 points due to strong performance of large-cap technology stocks.
The S&P 500 rose 0.6% to end at 4,488.72. Six out of 11 broad sectors of the benchmark ended in positive zone while five finished in negative territory. The Technology Select Sector SPDR (XLK) advanced 1.6%, while the Utilities Select Sector SPDR (XLE) dropped 0.8%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.1% to 14.82. A total of 9.7 billion shares were traded on Monday, lower than the last 20-session average of 10.9 billion. The S&P 500 posted eight new 52-week highs and 11 new 52-week lows. The Nasdaq Composite registered 50 new 52-week highs and 192 new 52-week lows.
Weak Economic Data
The Department of Labor reported that the producer price index (PPI) increased 0.3% month-over-month in July, higher-than-the consensus estimate of 0.2%. June’s data was revised downward to remain flat with May compared with an increase of 0.1% reported earlier. Year over year, PPI rose 0.8% in July. Core PPI (excluding volatile food, energy, and trade services) increased 0.2% month-over-month in July, marking its highest increase since February. Year over year, core PPI increased 2.7% in July.
The University of Michigan reported that the preliminary reading of consumer sentiment came in at 71.2 in August, missing the consensus estimate of 72. The final reading of July was 71.6, marking a 22-month high. The sub-index for current condition rose to 77.4 in August from 76.6 in July. The sub-index for expectations fell to 67.3 in August from 68.3 in July.
Semiconductor Stocks Rebound
Following weak economic data, yields on several key U.S. government bonds spiked on Friday. That resulted in a sharp decline of several chip stocks share prices. However, this sector rebounded on Monday. The VanEck Semiconductor ETF (SMH) was up 3%.
Consequently, stock prices of large-cap semiconductor stocks such as Micron Technology Inc. (MU - Free Report) and NVIDIA Corp. (NVDA - Free Report) surged 6.14% and 7.1%, respectively. NVIDIA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Q2 2023 Earnings Results So Far
We are in the last leg of the second-quarter 2023 earnings season. So far, earnings results are not great but they are not bad either. Moreover, the outlook given by companies that have already reported is far better than expected.
As of Aug 11, 457 S&P 500 companies reported earnings results. Total earnings of these companies are down 9.5% year-over-year on 0.5% higher revenues. Of these, 79% surpassed EPS estimates while 65.2% outpaced revenue estimates.
At present, our estimate has shown that the total earnings of the S&P 500 Index will likely decline 8.2% year-over-year on 0.8% higher revenues. The second-quarter earnings decline would follow the 3.4% decline in the first quarter and a 5.4% drop in fourth-quarter 2022.