Dow, S&P extends earnings to second consecutive session, Nasdaq records new closing record as Apple hits new record

US stock indices USA They closed higher on Tuesday, with the Nasdaq Composite reserving another record close, helped by improving economic data and optimism on Wall Street about US capacity. USA To respond to the growing cases of COVID-19.

Technology and consumer-oriented stocks led the recovery, with Apple posting a record high as investors responded to announcements from the tech giant’s World Developers Conference.

The Dow Jones Industrial Average DJIA,
+ 0.50%
increased 131.14 points, or 0.5%, to close at 26,156.10, backed by earnings from Apple
+ 2.13%.
The S&P 500 SPX Index,
+ 0.43%
It gained 13.43 points, or 0.4%, ending at 3,131.29. The Nasdaq COMP Composite Index,
+ 0.74%
It increased 74.89 points, or 0.7%, to finish at a new record of 10,131.37, after setting an intraday high.

All three indices finished their best levels of the session.

On Monday, the Dow advanced 153.50 points, or 0.6%, to end at 26,024.96. The S&P 500 rose 20.12 points, or 0.7%, to finish at 3,117.86, while the Nasdaq picked up 110.35 points, or 1.1%, closing at a record 10,056.47, reserving its seventh consecutive day of earnings and reaching the longest. Win streak since December 26, 2019, according to Dow Jones Market Data.

What drove the market?

Early signs of an economic recovery have caused US equity prices to rise. USA Increase in recent weeks as commercial activity resumes after blockades imposed to combat the coronavirus pandemic, but increasing cases of COVID-19, market sensitivity to trade developments in China and the US. USA The concentration of technology-related companies that drive the market higher is attracting more attention on Wall Street.

Dr. Anthony Fauci, the nation’s leading infectious disease expert, warned Tuesday that “the next two weeks will be critical” in terms of addressing a “disturbing increase” in COVID-19 cases in the United States, by time he promised to increase, not slow down, the virus test, in testimony before Congress about the federal response to the pandemic. He also reiterated cautious optimism about the prospects for vaccine development by the end of the year or early 2021.

“What is driving the market right now is cautious optimism around the increasingly tolerable or livable COVID situation, and a lessening of the alarm that increasing cases have skyrocketed in the past,” said Tony. Roth, chief investment officer for the Wilmington Trust, in an interview with MarketWatch.

“I don’t know if that will be the case, or not, but that’s certainly what’s driving the market,” said Roth.

Read: An infectious disease expert says we’re thinking too much about a second wave of COVID-19 when it really is more like a wildfire

The US equity and debt markets. USA They have also been bolstered by billions of dollars in monetary and fiscal stimuli aimed at mitigating the economic shocks created by the pandemic.

Treasury Secretary Steven Mnuchin on Tuesday and anticipates a new round of coronavirus stimulus to approve Congress in July, while stressing that he also expects China to postpone its end of the Phase 1 trade deal with Washington.

The Trump administration’s trade adviser, Peter Navarro, in an interview Monday night on Fox News, said the China trade deal had “ended.” Minutes later, the adviser said his comments were “taken out of context.” Trump also tweeted Monday night that trade with China was “completely intact.”

Back in the forefront of the stimulus, St. Louis Fed President James Bullard said Tuesday that companies are taking on more debt to stay in business during the health and economic crisis, but that he doesn’t see bubbles forming. dangerous assets.

In the economic data of EE. In the US, the IHS Markit preliminary composite purchasing manager index rose to 46.8 in June from 37 in May, highlighting a nascent economic recovery. The data showed that the services sector index increased to 46.7 in June from 36.9 in May, and the manufacturing index rebounded to 49.6, compared to 39.8 previously. While the indices are still below the 50 level, suggesting a contraction, they are constantly improving.

Similar data showed an improvement in the eurozone. The composite purchasing managers index for the eurozone, a measure of activity in the manufacturing and service sectors, rose to 47.5 in June from 31.9 in May to reach its highest level since February, the month before the blockades began. in Europe.

New home sales in the United States also increased 16.6% in May to 676,000 annual rates, compared to estimates for a profit of 632,000.

Meanwhile, the Nasdaq Composite’s advantage over the Dow and S&P 500 is the largest since 1983, while the divergence between the S&P 500 and the Dow is widest since 2002, according to Dow Jones Market Data, highlighting the strength of a handful. of stocks, including Apple
+ 2.13%,
+ 0.98%,
+ 1.26%,
+ 1.86%
and Google father Alphabet
+ 0.91%
+ 0.86%.

What actions were in focus?
  • American Airlines Inc. AAL
    It raised nearly $ 2 billion on Tuesday, partially through an offer of 74.1 million shares at $ 13.50 each, as the airline moves to raise cash and strengthen its liquidity position during the coronavirus pandemic. The airline has also priced a $ 1 billion offer on convertible bonds maturing in 2025 at 6.50%. Shares fell 6.2%.

  • Actions of Palatin Technologies Inc. PTN
    + 23.44%
    it was fired after he said he would try one of his investigational drugs as a treatment for COVID-19. Shares closed 23.5% higher.

  • Netflix Inc.
    The shares lost 0.4% on Tuesday, derailing a previous move toward a record close.

  • Apple Inc. share AAPL,
    + 2.13%
    closed 2.1% higher for a new record on Tuesday, after its World Developers Conference, where the company announced new operating systems for its iPhones and computers and said it would use its own chips when building new Mac computers, abandoning Intel in the process. .

  • Starbucks Corp. SBUX,
    + 0.11%
    He said Tuesday that he will launch his summer menu in the US. USA, which will include the Impossible Breakfast Sandwich. Shares gained 0.1%.

  • Greenwich LifeSciences

    He set the terms for his planned initial public offering on Tuesday, with plans to offer 1 million shares priced at $ 7.50 to $ 8.50 per pop.

  • Aurora Cannabis Inc. ACB
    The shares fell 1% on Tuesday, despite Cantor Fitzgerald raising its target price to C $ 29 from C $ 27 for the Canadian marijuana company after he described a new set of cost cuts, including reducing his corporate staff by 25% for six months.

  • Electronic Arts Inc. EA,
    + 0.67%
    Shares rose 0.7% Tuesday, a day after the company said in a call that the results of its first-quarter fiscal results ending in June were on track to record much better than the company originally forecast. .

  • Snap Inc. SNAP,
    + 2.02%
    The shares rose 2% on Tuesday, achieving an eighth earnings session, their longest winning streak on record.

  • Albertsons Companies, Inc. has submitted documents to go public. The supermarket chain plans to raise up to $ 1.3 billion and under the ticker “ACI” on the New York Stock Exchange.
  • Luckin Coffee Inc
    The shares fell 12.3% on Tuesday, after the China-based coffee vendor revealed that it received an additional foreclosure notice from Nasdaq last week for failing to file its 2019 annual report.

How did other assets perform?

West Texas US Intermediate Crude CLQ20,
It fell 36 cents, or 0.9%, to end at $ 40.37 a barrel on the New York Mercantile Exchange. In precious metals, gold futures closed near an eight-year high, with August contact GCM20,
+ 1.11%
earning $ 15.60, or 0.8%, to hit $ 1,782 an ounce, the highest price for the most active contract since October 4, 2012.

The 10-year Treasury note yields TMUBMUSD10Y,
It rose less than one basis point to 0.708%, while advancing just 1.5 basis points more in the last three trading sessions. Bond prices move inversely to yields.

The dollar fell 0.4% against the basket of its main rivals, based on trading in the ICE US Dollar Index DXY,

In global equities, the Stoxx Europe 600 SXXP Index,
+ 1.29%
closed 1.3% higher, while the FTSE 100 UKX index,
+ 1.20%
advanced 1.2%.

In Asian markets, China’s benchmark CSI 300 index 000300,
+ 0.48%
gained 0.4%, the Japanese Nikkei Nikki,
+ 0.31%
collected 0.5% lower, Hang Seng HSI of Hong Kong,
+ 1.61%
it gained 1.6%, and the South Korean Kospi index 180721,
+ 0.92%
rose 0.2%.