Several big companies are on deck for next week, including Johnson & Johnson, Netflix, United Airlines and Twitter. Banks kicked things off with mixed results this week. Investors have been reviewing the latest batch of corporate earnings to gain a clearer picture of inflation's impact on businesses. China locked down major cities earlier this year to try and contain COVID-19 cases and more outbreaks this week in China and elsewhere in Asia have raised worries that COVID-19 controls might be restored, on top of existing precautions. Overseas, stocks in Hong Kong and Shanghai fell following a report that showed the Chinese economy shrank by 2.6% compared with the January-March period’s already weak quarter-on-quarter rate of 1.4%. “And we saw that yesterday as the market retested that level only to be pushed higher, and then today with encouraging fundamentals to go along with it.” “Whenever we come down to about 3,800 and we bounce off it it’s a confirmation there are a lot of buyers at that level,” he said. The index has resisted dropping below 3,800, noted Stovall. Updated to include drought zones while tracking water shortage status of your area, plus reservoir levels and a list of restrictions for the Bay Area’s largest water districts.Īll told, the S&P 500 rose 72.78 points to 3,863.16. A government report showed that retail sales rose 1% in June from May, topping economists’ expectations, while prices for everything from food to clothing rose. They now see a 69.1% chance of a three-quarters of a percentage point rate hike.Įconomic data also shows that retail sales remain strong. They now see a 30.9% chance of that happening, according to CME Group. Traders have eased off of their bets that the Fed will issue a monster rate hike of 1% at its next policy meeting in two weeks. Investors have been closely watching economic reports for clues as to how the central bank might react and the latest upbeat consumer sentiment report raises the chance of the Fed softening its current policy. Wall Street has been worried that the Fed could go too far in raising rates and actually bring on a recession. The Fed has already raised rates three times this year. The Federal Reserve has been raising interest rates in an effort to hit the brakes on economic growth, and curtail rising inflation. Inflation and its impact on businesses and consumers remains a key focus for Wall Street. The yield on the two-year Treasury rose to 3.14% from 3.13% late Thursday. The yield on the 10-year Treasury slipped to 2.92% from 2.96% late Thursday. Citigroup jumped 13.2% for the biggest gain in the S&P 500 after reporting encouraging financial results.īond yields mostly fell. UnitedHealth Group rose 5.4% after raising its profit forecast for the year following a strong earnings report. Technology stocks, banks and healthcare companies made some of the biggest gains. “Investors are saying, look, ’we’ve seen this before, where the market goes up smartly one day, only to turn back around the next day,'” said Sam Stovall, chief investment strategist at CFRA. Those indexes also posted losses for the week, however. Smaller company stocks outgained the broader market, sending the Russell 2000 index 2.2% higher. The Dow Jones Industrial Average rose 2.1% and the Nasdaq gained 1.8%. Still, the gains weren't enough to pull the benchmark index out of the red for the week. The S&P 500 rose 1.9%, snapping a five-day losing streak. The report also bodes well for investors looking for signs that the Federal Reserve might eventually ease off its aggressive policy to fight inflation.
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