USA: Solid gains on Wall Street, the Dow gained for the seventh day in a row

Tuesday’s session on Wall Street ended with solid increases in the main indices. The Dow has gained for the seventh day in a row and is at its all-time high in 2023. Microsoft shares are the most expensive in history.

The Dow Jones Industrial closed up 1.06%. and amounted to 34,951.93 points. The index has the longest upward streak since 2021.

The S&P 500 ended the day up 0.71%. and amounted to 4,554.98 points.

The Nasdaq Composite gained 0.76 percent. and closed the session at 14,353.64 points.

Investors are focusing their attention on the beginning of the publication season of quarterly results and assessing the resilience of earnings to unfavorable external conditions, including high inflation and increased interest rates of central banks.

Markets expect central bank rates to remain elevated for longer than previously expected.

Treasury Secretary Janet Yellen said the US was on track to lower inflation while avoiding a recession. Such a scenario is feasible according to 68% of respondents. fund managers surveyed in a July global survey conducted by Bank of America.

“It is clear that everything is driven by the narrative of receding inflation. Investors are feeding on the hope that US interest rates will fall sooner and the hope that China will launch a stimulus package to boost consumption,” said Gilles Guibout, a portfolio manager at Axa Investment Managers in Paris.

“Any sense that the Federal Reserve has reached its interest rate target, or any sense that they are becoming less hawkish, will be the boost stocks need to keep moving higher,” said Fiona Cincotta, senior market analyst at City Index.

On Tuesday, investors received a large portion of the latest data from the US economy, including the most anticipated retail sales. It increased by 0.2% in June. month to month. Analysts had expected sales to rise 0.5%.

Retail sales excluding auto sales rose 0.2%. mdm. An increase of 0.3% was expected.

A month earlier, US retail sales rose 0.5%. in terms of m/m, after the adjustment from 0.3%, and excluding car sales, it increased by 0.3%, after the revision from 0.1%

The sentiment index among American construction companies, prepared by the National Association of Home Builders (NAHB), rose to 56 points in July. vs. 55 points in last month. The market expected the index at 56 pts.

US industrial production fell 0.5% in June. mdm. 0.0% expected m/m, compared to -0.5 percent. a month earlier, after a correction from -0.2 percent. Manufacturing fell 0.3 percent. mdm. 0.0% was forecast against -0.2%. a month earlier, after a correction of +0.1 percent.

Utilization of the production capacity of American companies amounted to 78.9 percent. vs. consensus of 79.5 percent and against 79.4 percent. a month earlier, after a correction from 79.6 percent.

The Dow Jones Industrial closed up 0.22%. and amounted to 34,585.35 points.

The S&P 500 ended the day up 0.39 percent. and amounted to 4,522.79 points.

The Nasdaq Composite gained 0.93 percent. and closed the session at 14,244.93 points.

Investors are focusing their attention on the beginning of the publication season of quarterly results and assessing the resilience of earnings to unfavorable external conditions, including high inflation and increased interest rates of central banks.

Markets expect central bank rates to remain elevated for longer than previously expected.

Treasury Secretary Janet Yellen said the US was on track to lower inflation while avoiding a recession. Such a scenario is feasible according to 68% of respondents. fund managers surveyed in a July global survey conducted by Bank of America.

“It is clear that everything is driven by the narrative of receding inflation. Investors are feeding on the hope that US interest rates will fall sooner and the hope that China will launch a stimulus package to boost consumption,” said Gilles Guibout, a portfolio manager at Axa Investment Managers in Paris.

“Any sense that the Federal Reserve has reached its interest rate target, or any sense that they are becoming less hawkish, will be the boost stocks need to keep moving higher,” said Fiona Cincotta, senior market analyst at City Index.

On Tuesday, investors received a large portion of the latest data from the US economy, including the most anticipated retail sales. It increased by 0.2% in June. month to month. Analysts had expected sales to rise 0.5%.

Retail sales excluding auto sales rose 0.2%. mdm. An increase of 0.3% was expected.

A month earlier, US retail sales rose 0.5%. in terms of m/m, after the adjustment from 0.3%, and excluding car sales, it increased by 0.3%, after the revision from 0.1%

The sentiment index among American construction companies, prepared by the National Association of Home Builders (NAHB), rose to 56 points in July. vs. 55 points in last month. The market expected the index at 56 pts.

US industrial production fell 0.5% in June. mdm. 0.0% expected m/m, compared to -0.5 percent. a month earlier, after a correction from -0.2 percent. Manufacturing fell 0.3 percent. mdm. 0.0% was forecast against -0.2%. a month earlier, after a correction of +0.1 percent.

Utilization of the production capacity of American companies amounted to 78.9 percent. vs. consensus of 79.5 percent and against 79.4 percent. a month earlier, after a correction from 79.6 percent.

At the end of the day, Microsoft shares rose 4 percent to $ 359.49. This is the highest level in their history. The company announced the introduction of a subscription of $ 30 per month for the support of the Office suite by artificial intelligence.

Bank of America shares rose 4.4 percent. The company’s revenues amounted to USD 25.2 billion in the reported period vs. the market consensus of USD 25.02 billion.

Morgan Stanley’s shares rose 6.4 percent. Morgan Stanley’s Q2 earnings per share was $1.24. The market expected $1.23.

FB Financial shares gained 6.5 percent. after the release of better-than-expected results for the second quarter.

Charles Schwab rose 7.4 percent. Earnings per share in the second quarter was 75 cents vs. the expected 72 cents.

Second-quarter results will be released on Wednesday. Tesla, Netflix and IBM.

In oil, August WTI futures are trading at $75.72 a barrel, up 2.1%, while September Brent futures are up 1.5%. up to USD 79.70/b. (PAP)

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