Support Local News.

At a moment of historic disruption and change with the ongoing COVID-19 pandemic, the calls for social and racial justice and the upcoming local and national elections, there's never been more of a need for the kind of local, independent and unbiased journalism that The Day produces.
Please support our work by subscribing today.

Wall Street glides, S&P 500 on pace for 6th gain in 7 days

Get the weekly rundown
Sign up to receive our weekly BizBuzz newsletter

NEW YORK (AP) — U.S. stocks are gliding higher in early Wednesday trading, as more gains for big technology companies help Wall Street return to its upswing. 

The S&P 500 was 0.8% higher after the first 30 minutes of trading, following a mixed performance for stocks overseas. Treasury yields ticked a bit higher, as did oil prices. Gold touched its highest price since 2011.

The Dow Jones Industrial Average was up 190 points, or 0.7%, at 26,080, as of 10 a.m. Eastern time, and the Nasdaq composite was up 1.1%.

Wall Street's gains were widespread, and roughly three out of four stocks in the S&P 500 were higher. Apple, Microsoft and other tech titans once again were notable leaders, much as they've dominated markets for years. Investors continue to pile into companies they see as able to grow almost regardless of the economy, and Apple gained 1.9%, while Microsoft rose 1.8%.

The drift higher follows Tuesday’s snapback, where the S&P 500 fell 1.1% to break a five-day winning streak. The selling accelerated late in the day, and analysts say investors were likely cashing in on recent gains given the uncertainty that lies ahead for markets.

U.S. stocks have largely churned in place over the last month, with big daily moves up and down offsetting each other. On one hand, budding improvements in the economy are helping to lift markets, which are already getting propped up by immense aid from central banks and governments around the world.

On the other, the pandemic continues to worsen in several hotspots around the world, including across the U.S. South and West. That raises the threat of a derailment for the economic improvements.

This week may be a relatively quiet one for markets, with few headline economic reports left on the schedule other than Thursday’s update on unemployment claims. Next week may have more action, when a couple dozen companies in the S&P 500 are scheduled to report their earnings results for the second quarter.

Expectations for the upcoming earnings season are dismal. More important for investors, analysts say, may be what companies say about trends for the rest of the year and even 2021, when profits are expected to grow again.

Treasury yields ticked higher. The yield on the 10-year Treasury rose to 0.67% from 0.64%. It tends to move with investors’ expectations for the economy and inflation.

In Asian stock markets, Japan’s Nikkei 225 slipped 0.8%, Hong Kong’s Hang Seng added 0.6% and South Korea’s Kospi slipped 0.2%. The biggest action was in Shanghai, where stocks jumped another 1.7%. That brings their gain to 14% for July so far, raising concern that speculators are driving the market.

In Europe, the German DAX lost 0.5%, and France’s CAC 40 dropped 0.9%. The FTSE 100 in London slipped 0.3%.

Benchmark U.S. crude added 0.3% to $40.73 per barrel. Brent crude, the international standard, edged up 0.2% to $43.16 per barrel.

Gold added 0.7% to $1,825.10 per ounce. Its price tends to rise with worries about the economy and inflation, and it has climbed more than $300 since mid-March. Its rise, concurrent with the stock market's rally over the same time frame, highlights for critics the disconnect going on between Wall Street and the economy.

------

AP Business Writer Yuri Kageyama contributed.

 

READER COMMENTS

Loading comments...
Hide Comments

TRENDING

PODCASTS