NEW YORK: US stocks rose on Tuesday (July 11), helped by optimism ahead of key inflation reports and as JPMorgan and other financial shares gained before earnings later this week.
Investors are looking for further clues on whether price pressures are abating and if the Federal Reserve is nearing the end of its interest rate hiking cycle.
The Dow Jones Industrial Average rose 317.02 points, or 0.93%, to 34,261.42, the S&P 500 gained 29.73 points, or 0.67%, to 4,439.26 and the Nasdaq Composite added 75.22 points, or 0.55%, to 13,760.70.
The S&P 500 is up 15.6% for the year so far, with technology up 40% in that period.
US consumer price data is due on Wednesday, while a producer prices report is due on Thursday. Several Fed officials said this week the central bank would likely need to raise rates further to curb inflation but that the end of its tightening cycle was getting close.
Cresset Capital’s Jack Ablin said the equity market’s gains suggest investors were “positioning” for a favourable inflation report on Wednesday.
But Oanda’s Edward Moya cautioned that “sticky inflation signs will likely remain” even if the report shows further moderation in prices.
Analysts have suggested the breadth of the market rally, which goes beyond technology shares to industrials and other sectors, could indicate the market might have more upside in the period ahead.
JPMorgan Chase & Co shares advanced 1.6% after Jefferies upgraded the stock to a “buy” ahead of the bank’s quarterly results due on Friday.
Reports from JPMorgan and other big banks later this week are expected to unofficially kick off the start of the second-quarter reporting period. The S&P banking index rose 1.5%.
Energy shares also jumped along with sharply higher oil prices.
“It’s nice to see the market broadening out here ahead of earnings,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
“We’ve got a lot of data that’s going to be coming in here ... and expectations for the third quarter are also a concern in terms of any guidance companies might be giving on earnings calls.”
Wall Street banks are expected to report higher profits for the second quarter as rising interest payments offset a reduction in dealmaking.
Among the S&P 500’s biggest gainers on the day, shares of videogame maker Activision Blizzard jumped 10% after a US judge ruled that Microsoft may proceed with its planned acquisition of the “Call of Duty” game maker.
Salesforce shares rose 3.9% after the cloud services firm said it would increase prices of some of its cloud and marketing tools, a first in seven years.
Also, Amazon.com shares edged up 1.3% with its “Prime Day” 48-hour discount shopping event going on this week. – Reuters, AFP
Source: The Sun Daily
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