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Wall Street closed higher on Monday, driven by tech and discretionary stocks. Optimism about a growing economy and falling prices dominated proceedings in the market. Treasury yields touched multi-week highs on global political developments. All of the three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 50.66 points, or 0.1%, to close at 39,169.52. Fifteen components of the 30-stock index ended in negative territory, while 15 ended in positive.
The tech-heavy Nasdaq Composite gained 146.70 points, or 0.8%, to close at 17,879.30.
The S&P 500 advanced 14.61 points, or 0.3%, to close at 5475.09. Seven of the 11 broad sectors of the benchmark index closed in the red. The Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Real Estate Select Sector SPDR (XLRE) lost 1.5%, 1.1% and 0.9%, respectively, while the Technology Select Sector SPDR (XLK) rose 0.8%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1.8% to 12.22. A total of 10.6 billion shares were traded on Monday, lower than the last 20-session average of 11.9 billion. Decliners outnumbered advancers by a 1.87-to-1 ratio on the NYSE.
Mega-Cap Growth Stocks Drives the Market
Late last week, per the third government estimate, gross domestic product (GDP) in the United States increased at an annual rate of 1.4% in the first quarter of 2024. In the fourth quarter of 2023, real GDP jumped 3.4%. The increase in the first quarter primarily reflected the rise in consumer spending, housing investment and business investment.
In addition to the GDP data, PCE inflation numbers showed gradually slowing down prices, thereby livening up investor mood. Mega-cap growth stocks like tech usually do well when inflation seems to be coming down and the outlook looks better. Consequently, shares of Apple Inc. (AAPL - Free Report) and Microsoft Corporation (MSFT - Free Report) rose 2.9% and 2.2%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Treasury Yields Rise to Multi-Week High
U.S. Treasury yields rose to muti-week highs following France's historic elections and ahead of a key jobs data week that could provide clues to the Fed’s monetary policy going forward. The benchmark 10-year treasury yield rose to 4.4692%, its highest since mid-June.
Economic Data
Per a report from the U.S. Census Bureau, construction spending in May was estimated at a seasonally adjusted annual rate of $2,139.8 billion, decreasing 0.1% from the revised April estimate of $2,142.1 billion. In April, a 0.1% fall was revised up to a 0.3% rise.
Per the Institute for Supply Management, the manufacturing sector contracted in May for the second consecutive month and the 18th time in the last 19 months. The ISM manufacturing index for June came in at 48.5 for June against a consensus of 49.4 for the period. The May number of 48.7 remained unrevised.
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Stock Market News for Jul 2, 2024
Wall Street closed higher on Monday, driven by tech and discretionary stocks. Optimism about a growing economy and falling prices dominated proceedings in the market. Treasury yields touched multi-week highs on global political developments. All of the three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 50.66 points, or 0.1%, to close at 39,169.52. Fifteen components of the 30-stock index ended in negative territory, while 15 ended in positive.
The tech-heavy Nasdaq Composite gained 146.70 points, or 0.8%, to close at 17,879.30.
The S&P 500 advanced 14.61 points, or 0.3%, to close at 5475.09. Seven of the 11 broad sectors of the benchmark index closed in the red. The Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Real Estate Select Sector SPDR (XLRE) lost 1.5%, 1.1% and 0.9%, respectively, while the Technology Select Sector SPDR (XLK) rose 0.8%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1.8% to 12.22. A total of 10.6 billion shares were traded on Monday, lower than the last 20-session average of 11.9 billion. Decliners outnumbered advancers by a 1.87-to-1 ratio on the NYSE.
Mega-Cap Growth Stocks Drives the Market
Late last week, per the third government estimate, gross domestic product (GDP) in the United States increased at an annual rate of 1.4% in the first quarter of 2024. In the fourth quarter of 2023, real GDP jumped 3.4%. The increase in the first quarter primarily reflected the rise in consumer spending, housing investment and business investment.
In addition to the GDP data, PCE inflation numbers showed gradually slowing down prices, thereby livening up investor mood. Mega-cap growth stocks like tech usually do well when inflation seems to be coming down and the outlook looks better. Consequently, shares of Apple Inc. (AAPL - Free Report) and Microsoft Corporation (MSFT - Free Report) rose 2.9% and 2.2%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Treasury Yields Rise to Multi-Week High
U.S. Treasury yields rose to muti-week highs following France's historic elections and ahead of a key jobs data week that could provide clues to the Fed’s monetary policy going forward. The benchmark 10-year treasury yield rose to 4.4692%, its highest since mid-June.
Economic Data
Per a report from the U.S. Census Bureau, construction spending in May was estimated at a seasonally adjusted annual rate of $2,139.8 billion, decreasing 0.1% from the revised April estimate of $2,142.1 billion. In April, a 0.1% fall was revised up to a 0.3% rise.
Per the Institute for Supply Management, the manufacturing sector contracted in May for the second consecutive month and the 18th time in the last 19 months. The ISM manufacturing index for June came in at 48.5 for June against a consensus of 49.4 for the period. The May number of 48.7 remained unrevised.