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

Stocks march on; Treasury yields, dollar hit by weak consumer confidence

Stock MarketsAug 13, 2021 04:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. Investors look at screens showing stock information at a brokerage house in Shanghai, China January 16, 2020. REUTERS/Aly Song 2/2

By Matt Scuffham

NEW YORK (Reuters) -Global stock markets hit new record highs on Friday, boosted by forecast-beating corporate earnings, but the dollar and Treasury yields fell after data showed U.S. consumer confidence plummeted in early August.

The University of Michigan's survey showed consumer confidence falling to its lowest level since 2011 in the first half of this month. The decline marked one of the six largest drops in the past 50 years of the survey.

The unexpectedly weak reading could give Federal Reserve policymakers reason to pause on a decision over whether to begin

pulling back the extraordinary stimulus it put in place to shield the U.S. economy from the COVID-19 pandemic.

"The renewed plunge suggests the latest wave of virus cases driven by the Delta variant could be a bigger drag on the economy than we had thought," said Andrew Hunter, an economist at Capital Economics.

Pandemic-era stimulus has been behind much of the surge in stock prices the past year, but massive corporate earnings have given the rally new legs in recent weeks.

"If we look at the earnings trajectory, it still lends a lot of support to the valuations in the market," said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. "Earnings season provided some comfort and stability."

The MSCI world equity index, which tracks shares in 50 countries, hit a fresh record high.

MSCI's gauge of stocks across the globe gained 0.22%.

The S&P 500 and Dow Jones Industrial Average closed at record highs. Walt Disney (NYSE:DIS) was a star performer, climbing 1.6% after its earnings topped market forecasts.

The Dow Jones Industrial Average rose 16.06 points, or 0.05%, to 35,515.91, the S&P 500 gained 7.26 points, or 0.16%, to 4,468.09 and the Nasdaq Composite added 6.64 points, or 0.04%, to 14,822.90.

European stocks scaled new highs and clocked their fourth consecutive week of gains on optimism over a strong earnings season and steady recovery from the pandemic-led economic downturn.

The pan-European STOXX 600 index rose 0.2% to a record high of 476.16, for the tenth straight session. The index has now matched its best winning streak since December 2006.

Not everyone is convinced the rally can continue, however.

"We feel a bit more cautious headed into autumn because of uncertainty on the health front, the Chinese regulatory front and the monetary policy front," said Paul O'Connor, head of multi-asset at Janus Henderson.

Gold rose as tapering concerns eased.

Spot gold added 1.5% to $1,778.31 an ounce.

U.S. gold futures settled up 1.5% at $1,778.20.

U.S. benchmark 10-year Treasury yields tumbled and the dollar weakened after the consumer confidence survey, bolstering gold's appeal.

Benchmark 10-year notes last rose 24/32 in price to yield 1.2884%, from 1.367% late on Thursday.

The dollar index fell 0.516%, with the euro up 0.59% to $1.1796.

Worries about a regulatory crackdown in China and a surge in the COVID-19 Delta variant have sapped confidence in Asia, where markets mostly declined.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.56%, and was 0.8% lower for the week.

Chinese blue chips weakened 0.55%, dragged down by the local semiconductor sub-index, which slumped 4.1%.

Oil fell on Friday, but was on track to post a slight weekly gain, broadly shrugging off a warning from the International Energy Agency that the spread of coronavirus variants is slowing oil demand.

U.S. crude futures settled at $68.44 per barrel, down 65 cents or 0.94%. Brent crude futures settled at $70.59 per barrel, down 72 cents or 1%.

Stocks march on; Treasury yields, dollar hit by weak consumer confidence
 

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 (5)
Dave Wastreet
Dave Wastreet Aug 13, 2021 10:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Insane
Fakhri Alisoy
Fakhri Alisoy Aug 13, 2021 10:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the news is that michigan university expectation is worst than expect..but https://investing.com still hasnt set it on the website economic calendar..people dont be aware of it..fraudulence
rweqrwq rwqrwqrwq
rweqrwq rwqrwqrwq Aug 13, 2021 1:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tomorrow headlines: stocks hit record high on recovery hopes!
LM LM
Nikonos Aug 13, 2021 1:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tomorrow it's Saturday
Ben Chod
Ben Chod Aug 13, 2021 1:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol
Franco Dominguez
Franco Dominguez Aug 13, 2021 12:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
delta variants affects ALL countries even vaccinated it
Chris Sundo
Chris Sundo Aug 12, 2021 11:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
2 Steps back 2.1 Steps forward and HURRAY we have another RECORD HI !! Break the champagne, Yipeehh  ;)   __ Tomorrow Friday the 13th .... uuuhh .. practicing for Halloween ?
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email