Wall Street closed higher on Monday maintaining winning streak for five successive days of trading. However, gains were marginal as market participants wait for big tech's earnings results and Fed's decision of FOMC meeting this week. All the three major stock indexes ended in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2% to close at 35,061.55. Notably, 20 components of the 30-stock index ended in the green while 10 in red. This was a new closing high of the blue-chip index. In intraday trade, the index recorded an all-time high of 35,150.37.
The tech-heavy Nasdaq Composite finished at 14,840.71, gaining a marginal 3.72 points due to strong performance by large-cap technology stocks. The teach-laden index has registered a new closing high. In intraday trade, the index posted an all-time high of 14,863.65.
Meanwhile, the S&P 500 moved up 0.2% to end at 4,422.30, marking a new closing high. In intraday trade, the benchmark index recorded an all-time high of 4,422.73. The Energy Select Sector SPDR (XLE) surged 2.5%. Eight out of eleven sectors of the broad-market index closed in green while three in red.
The fear-gauge CBOE Volatility Index (VIX) was up 2.2% to 17.58. A total of 9.77 billion shares were traded on Monday, lower than the last 20-session average of 9.82 billion. Advancers outnumbered decliners on the NYSE by a 1.30-to-1 ratio. On Nasdaq, a 1.28-to-1 ratio favored declining issues.
Big Techs to Report This Week
Wall Street will remain busy this week to analyze second-quarter 2021 earnings results as nearly 1,000 companies will report their financial numbers and other metrics. The second-quarter earnings season is very impressive so far.
As of Jul 23, 120 companies of the S&P 500 Index reported results. Total earnings of these companies were up 118.9% year over year on 18.4% higher revenues. Moreover, 89.2% of these companies beat their earnings per share (EPS) estimates and 85% surpassed revenue estimates.
For the second quarter as a whole, total earnings of the S&P 500 Index are expected to be up 74.3% year over year on 20% higher revenues. This indicates an improvement over the initial projection of EPS increasing 62.2% from the same period last year on 18.2% higher revenues.
This week, corporate behemoths like Apple Inc. AAPL, MSFT Corp. MSFT, Facebook Inc. FB, Amazon.com Inc. AMZN will report their quarterly results. Amazon carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fed's FOMC Meeting In Focus
The Fed will meet for its two-day policy meeting staring Jul 27. On Jul 28, the central bank will give a statement regarding decisions taken by its members. Investors will keenly watch FOMC meeting to see whether the central bank maintains its stand that the current inflation is transitory. Also, any indication about the tapering of the existing $120 billion bond-buying program of the Fed will be of immense importance for market participants.
The Department of Commerce reported that sales of new single family home fell 6.6% to an annualized rate of 676,000 in June. May's data was revised downward to 724,000 from 764,000. The consensus estimate for June was 794,000. Year over year, New home sales plunged 19.4%. June's data was the lowest since April 2020.
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