Shares continue to grow with the S&P 500 and Nasdaq gaining profit for the fifth day in a row


U.S. stocks rose on Wednesday, with the help of banks and the reopening of stocks with an increase in ten-year treasury yields.

The Dow Jones industry average rose 39.24 points, or 0.1%, to 35,405.50. The S&P 500 added 0.2% to a new closing high of 4,496.19. The Nasdaq Composite strengthened 0.1% to 15,041.86, which is also a new closing high.

The yield on the reference ten-year treasury note on Wednesday rose as much as 1,352%, reaching the highest level since earlier in the month when it yielded as much as 1,364%. That lifted JPMorgan shares by 2%, while Wells Fargo rose 1.9%. Zions regional banks grew by 1.6% and Regions Financial by 1.5%. The fifth third added 2.2%.

Travel and leisure supplies were also higher. Several airlines and cruises maintained an increase of 1% for most of the session. Casino shares Penn National Gaming and Caesars Entertainment strengthened by 8.6% and 4%, respectively. MGM Resorts added 2.9%.

Chipmakers were larger, with Western Digital jumping 7.8% after a Wall Street Journal report said the company is in advanced negotiations to merge with Japan’s Kioxia Holdings. Nvidia shares rose 1.9% after news that the Department of Energy would run its new supercomputer on the company’s computing platform. Micron Technology also grew 2.8%.

Markets are strengthened signs that cases delta variants could reach a climax. Said Tom Lee of Fundstrat in a note to clients late Tuesday that the worst could be behind us, citing falling positivity rates in Florida and Texas as the reason.

“We realize that stock markets have been shaken, and a big variation in perspective means investors don’t have an easy consensus. But our central case remains to move on to full risk, with“ everything coming together ”by the end of the year, Lee wrote. “The cadence of incoming data has improved in recent days, with the most significant increase in the number of COVID-19 cases in a number of states.”

Johnson & Johnson said Wednesday that the vaccine against Covid has been boosted showed promising results in the early stages of clinical trials, significantly increasing antibodies to fight the virus. Shares, however, fell slightly.

Delta Air Lines said Wednesday it would increase health insurance premiums that unvaccinated employees cover the higher costs of Covid. The company has about 75,000 employees, and approximately 75% of them are fully vaccinated. On Tuesday, Goldman Sachs will require employees they enter his offices to be fully vaccinated. Delta and Goldman added 1.9% and 1.1%, respectively.

Wells Fargo Securities investment strategy chief Christopher Harvey also sees new gains on the horizon. He raised his S&P 500 at the end of the year target 4,825 on Tuesday, which is about 7.5% more than the index that ended that day. Harvey’s call is based on its strength until August which carries over into the final months of the year.

“In the last 31 years, there have been nine cases in which the S&P 500 had a price return of 10% + in the first eight months of this year; in the next four months, the index averaged another + 8.4%. None of these cases produced a negative return in the last four months, ”he wrote in a note to clients.

Dick shares of Sporting Goods jumped 13.3% and reached an all-time record after reporting strong quarterly earnings.

The long-awaited Jackson Hole symposium begins later this week, and central bankers could submit updates on their plan to cut monetary stimulus. The Federal Reserve is buying bonds worth at least $ 120 billion a month to curb long-term interest rates and drive economic growth as the pandemic has wreaked havoc on the economy.

Chairman Jerome Powell is due to make remarks Friday.

“Faster talks are worrying, but if inflation continues to be hot and economic data continues to be mixed, the downtime could worsen,” said Lindsey Bell, chief investment strategist at Ally Invest. “The Fed is unlikely to impose an economy that is not ready, and the outlook becomes less certain with the rise of the delta variant.”

Bell added that the deciding factor could be the August employment report by Sept. 3, as Covid’s cases have jumped in the past month as the delta variant expands.

Several technology companies will report earnings Wednesday after the market closes, including the Dow component of Salesforce. Box and Snowflake are also on deck.

Become a smarter investor with CNBC Pro.
Get promotions, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to get started a free trial today


Like it? Share with your friends!


What's Your Reaction?

hate hate
confused confused
fail fail
fun fun
geeky geeky
love love
lol lol
omg omg
win win


Your email address will not be published. Required fields are marked *