Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street ends first day of third quarter with solid rebound

Economy Jul 01, 2022 08:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid/Files

By Stephen Culp

NEW YORK (Reuters) - Wall Street bounced back to a sharply higher close in light trading on Friday as investors embarked on the second half of the year ahead of the long holiday weekend.

All three major U.S. stock indexes reversed early losses to end in well into positive territory in the wake of the stock market's worst first half in decades.

Still, all three indexes posted losses for the week.

"We're headed into the holiday weekend and having a late-day relief rally," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. "But we’ll likely have to wait until investors return from the holiday weekend to see if it’s sustainable at the start of the new quarter."

Market participants now look to the second-quarter earnings season, the Labor Department's June employment report, and the Federal Reserve's monetary policy meeting expected later in July.

The microchip sector dropped sharply after Micron Technology Inc (NASDAQ:MU) warned of cooling demand.

Micron's shares slid 2.9%, pulling the Philadelphia SE Semiconductor index down 3.8%.

Worries over waning demand in the face of decades-high inflation were reflected in the Institute for Supply Management's (ISM) purchasing managers' index, which showed a deceleration in both new orders input prices.

ISM's report seemed to back the view that the economy is cooling and inflation appears to be past its peak. This has raised the possibility that the Fed might have wiggle room for a dovish pivot after its second straight 75 basis point interest rate hike expected in July.

"The Fed is going to need to see a lot more evidence to change its mind about further continued interest rate hikes," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York. "There’s still a lot of uncertainty about the economy and inflation despite early signs that inflation may have peaked."

The Dow Jones Industrial Average rose 321.83 points, or 1.05%, to 31,097.26, the S&P 500 gained 39.95 points, or 1.06%, to 3,825.33 and the Nasdaq Composite added 99.11 points, or 0.90%, to 11,127.85.

All 11 major sectors of the S&P 500 ended the session green, with utilities enjoying the largest percentage gain.

Second-quarter reporting season begins in several weeks, and 130 of the companies in the S&P 500 have pre-announced. Of those, 45 have been positive and 77 have been negative, a weaker negative/positive ratio than a year ago, according to Refinitiv data.

The prospect of profit margins taking a hit from bruising inflation and waning consumer demand will have market participants listening closely to forward guidance.

Analysts now expect aggregate second-quarter S&P 500 earnings growth of 5.6%, down from the 6.8% projected at the beginning of the quarter, per Refinitiv.

Department store chain Kohl's Corp (NYSE:KSS) shares tumbled 19.6% following its decision to halt talks of a possible sale to Franchise Group (NASDAQ:FRG).

Advancing issues outnumbered declining ones on the NYSE by a 2.77-to-1 ratio; on Nasdaq, a 1.57-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and 48 new lows; the Nasdaq Composite recorded 12 new highs and 219 new lows.

Volume on U.S. exchanges was 11.01 billion shares, compared with the 12.88 billion average over the last 20 trading days.

Wall Street ends first day of third quarter with solid rebound
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
ottin nerner
ottin nerner Jul 02, 2022 12:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
plunge protection team....
Brad Albright
Brad Albright Jul 02, 2022 12:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tin foil hat brigade.
Shamo Nestor
Shamo Nestor Jul 01, 2022 8:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Current governments in power need to be voted out
taylor jason
taylor jason Jul 01, 2022 8:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
couldn't agree more
G D
G D Jul 01, 2022 3:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You know it's all manipulation.
P Killa
P Killa Jul 01, 2022 3:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just have to know how to play the game On green days I buy SPXS calls. On red days i sell them... Rinse and repeat
Brad Albright
Brad Albright Jul 01, 2022 3:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sure. Anything you cannot comprehend must be due to some great force aligned against us.
Shamo Nestor
Shamo Nestor Jul 01, 2022 11:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Vote out every current government
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email