U.S. stocks rebounded across the major three benchmarks, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite, which recouped all of their earlier losses. A major part of the clawback came as investors dipped back into large cap tech names and pushed the Nasdaq to a fresh record.
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Ticker | Security | Last | Change | %Chg |
---|---|---|---|---|
I:DJI | DOW JONES AVERAGES | 25126.87 | +62.51 | +0.25% |
I:COMP | NASDAQ COMPOSITE INDEX | 7850.4649 | +44.75 | +0.57% |
SP500 | S&P 500 | 2810.94 | +12.51 | +0.45% |
Netflix shares curbed some of their losses after the streaming giant’s quarterly subscribers fell short of estimates. It added 5.15 million subscribers during the quarter, falling below forecasts and less than the 7.4 million added in the prior quarter. Other FAANG stocks, which initially fell in sympathy, turned higher as well with Amazon on track to capture a new record high despite some snafus with its widely publicized Prime Day, in which users experienced some minor glitches on the site. Facebook is also looking at a new record.
Ticker | Security | Last | Change | %Chg |
---|---|---|---|---|
AMZN | AMAZON.COM INC. | 1,844.49 | +22.00 | +1.21% |
FB | FACEBOOK INC. | 208.82 | +1.59 | +0.77% |
AAPL | APPLE INC. | 191.15 | +0.24 | +0.13% |
GOOGL | ALPHABET INC. | 1,214.65 | +18.14 | +1.52% |
NFLX | NETFLIX INC. | 379.89 | -20.59 | -5.14% |
Investors did engage in some profit taking after Goldman Sachs and UnitedHealth both exceeded analysts’ expectations on profit and revenue targets. Goldman also announced David Solomon will become its new CEO, replacing Lloyd Blankfein who is retiring later this year.
Ticker | Security | Last | Change | %Chg |
---|---|---|---|---|
GS | GOLDMAN SACHS GROUP INC. | 228.41 | -3.03 | -1.31% |
UNH | UNITEDHEALTH GROUP INCORPORATED | 250.37 | -6.61 | -2.57% |
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Along with earnings, Federal Reserve Chairman Jerome Powell, appearing before the Senate Banking Committee, reiterated that the U.S. economy is in good shape. “Incoming data show that, alongside the strong job market, the U.S. economy has grown at a solid pace so far this year” he said in a statement while indicating that interest rates will continue to rise at a gradual pace. Powell will take Q&A from lawmkers throughout the morning. This is the first of the Fed’s two-day semiannual monetary policy report to Congress amidst growing concerns of the impact of tariffs on the economy.
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“At Powell’s testimony today, many will be watching to see what he says about the possibility of a trade war with China, which is weighing on many investors’ minds and the Fed, too,” said Jonathan Hoenig, managing member at Capitalistpig.com. “That’s one of the main arguments not to raise rates at present.”
In other economic news, U.S. home builders are feeling good. Builder confidence held steady in July at a reading of 68 as tracked by the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). “Consumer demand for single-family homes is holding strong this summer, buoyed by steady job growth, income gains and low unemployment in many parts of the country,” said NAHB Chairman Randy Noel in a statement. Additionally, Industrial production data for June rose 0.6% in-line with expectations and rebounding from a drop 0.5% in May.
In commodities, U.S. oil prices are taking a breather after falling more than 4% on Monday, currently sitting around the $67 per barrel level.