Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street roars to record peak on rosy earnings, dollar wilts

Stock MarketsJul 29, 2021 04:37PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A Stock Exchange of Hong Kong (HKEX) logo in Beijing, China September 4, 2020. REUTERS/Tingshu Wang 2/2

By Koh Gui Qing

NEW YORK (Reuters) - U.S. shares bounded to record highs on Thursday helped by strong company earnings and solid economic growth data, though the Federal Reserve's message earlier this week that it is in no hurry to taper stimulus pinned the dollar at a one-month low.

Following a spate of strong corporate earnings reports from Ford Motor (NYSE:F) Co to KFC owner Yum Brands Inc overnight, investors were further cheered by data showing the U.S. economy grew at a solid annualized pace of 6.5% in the second quarter.

"Today is a follow-on from really good earnings last night, which is great news," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, which manages $4 billion in assets. "The expectation is that we will continue to see good earnings."

The volley of positive news boosted the Dow Jones Industrial Average to a record high of 35,171.52 points before closing up 0.4%. The S&P 500 also jumped to an all-time high of 4,429.97 points before finishing 0.4% higher, while the Nasdaq Composite added 0.3%.

Equity markets elsewhere were also buoyant as investors digested news of bumper financial earnings in Europe, while reports that Chinese regulators had called banks overnight to soothe concerns about a widening regulatory crackdown further brightened the mood.

The pan-European STOXX 600 index climbed 0.46%, having also hit a record high of 464.31 points earlier, and MSCI's gauge of stocks across the globe gained 0.9%.

Chinese blue-chip shares rebounded 1.9%, and the Hang Seng Tech Index, the target of heavy selling recently, gained 3.8%, though it was still down 4% for the week. [.SS]

The market exuberance did not extend to the dollar, which languished as investors digested the Federal Reserve's remarks on Wednesday that the strength of future economic data will determine when it starts to taper its bond purchases.

The dollar index fell 0.38% to 91.898, a level last seen on June 29. A sluggish dollar hoisted the euro up 0.35% to $1.1887, its highest in more than three weeks. [USD/]

Treasury yields seesawed in choppy trade, as investors grappled with the conflicting signals of the Fed's dovish tone and the run of positive economic and corporate news.

By early Thursday evening, benchmark 10-year yields were flat at 1.263%, unchanged from Wednesday. Two-year yields edged lower, however, pulling back to 0.2035% from 0.211% [US/]

Gold investors cheered the prospect that a dovish Fed more focused on supporting economic growth than tempering price pressures could bode well for bullion, seen as a hedge against inflation. [GOL/]

Spot gold added 1.2% to $1,827.79 an ounce. U.S. gold futures gained 1.58% to $1,828.10 an ounce.

Oil prices were also firm as data showed crude stockpiles in the United States, the world's top oil consumer, fell to their lowest since January 2020, with Brent crude oil prices pushing back above $75 a barrel. [O/R]

U.S. crude recently rose 1.64% to $73.58 per barrel and Brent was at $76.06, up 1.77% on the day.

Wall Street roars to record peak on rosy earnings, dollar wilts
 

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 (9)
JAMES CUNHA
JAMES CUNHA Jul 29, 2021 12:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I hate to say this...but I am just getting the impression that the Fed is looking after the interests of the top .001% of our society.  The working class and small businesses will struggle with inflation.  I can't rely on the erratic equity markets to gamble my savings hoping to use it as a hedge against inflation.  This would be preposterous.
JAMES CUNHA
JAMES CUNHA Jul 29, 2021 12:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
didn't the Fed Chair say that production was quickly picking up and that higher inflation is associated with the activity? How can he reconcile the higher inflation with higher unemployment and a drop in GDP last qtr?  Does he think inflation is just going to go away?  I don't know about him... but the cost of living is getting outrageous.
Daniel blade
Daniel blade Jul 29, 2021 10:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
recession is on the way back
Yelen Shim
Yelen Shim Jul 29, 2021 8:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Only the fool bets against Chinese economy.
zen cool
zen cool Jul 29, 2021 5:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tentative? what a joke
Klaus Weyers
Klaus Weyers Jul 29, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
increasing my equity shorts.. buying gold and silvet
Lawrenti Berija
Lawrenti Berija Jul 29, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no no no, don't burn your money in equity shorts, they'll do you a lot longer than you can imagine
Lawrenti Berija
Lawrenti Berija Jul 29, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i mean long PM is god enough..
Lawrenti Berija
Lawrenti Berija Jul 29, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good enough
Trat Nguyen
Trat Nguyen Jul 29, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Klaus doesn't understand investing, which is why he was fired from Goldman and convicted of embezzling money in Germany.  He tried to flee to the US to avoid his sentencing and now spends his days trying to rip off locals.  If you want success, do the opposite of his suggestions.
Francesco Lucchesi
Francesco Lucchesi Jul 29, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Francesco Lucchesi
Francesco Lucchesi Jul 29, 2021 1:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
disaster is this time truly unavoidable. it will be epic
Daniel blade
Daniel blade Jul 29, 2021 1:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
like covid is unavoidable. and mask is unavoidable as well.  recession is unavoidable
Mike Chen
Mike Chen Jul 28, 2021 11:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Keep printing and let inflation helps the borrowers.
Stan Smith
Stan Smith Jul 28, 2021 11:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
" No Hurry to taper "???...The FED can't taper, just like it can't raise interest rates. Unfortunately markets are now addicted to MMT and the consequences of pulling away the punch bowls will be disastrous
 
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