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

Wall Street bounces back on renewed economic optimism

Stock MarketsJul 20, 2021 06:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A person walks by the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly

By Stephen Culp

NEW YORK (Reuters) - Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally.

All three major U.S. stock indexes gained more than 1% with the blue-chip Dow, on the heels of its worst day in nine months, leading the charge.

The S&P notched its first advance in four days as well as registering its strongest day since March. The Nasdaq posted its first gain in six sessions.

"It’s a buy-the-dip mentality coming into the market," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

Economically sensitive small caps and transports outperformed the broader market.

Benchmark U.S. Treasury yields bounced back from five-month lows, in the wake of their biggest single-session decline since February in the prior session. This helped boost rate-vulnerable banks by 2.6%.

"The economically sensitive stocks are up today," Carlson added. "When the 10-year (Treasury yield) goes down in a short period of time, that typically doesn’t happen with an economy that’s supposed to be growing. Firming in the 10-year (yield) indicates that perhaps the economy isn’t going to be falling off a cliff."

Mounting concerns over the highly contagious Delta variant of COVID-19, now responsible for the majority of new infections, have sparked sell-offs in recent sessions as worldwide vaccination efforts gather momentum.

"Things like the Delta variant can certainly impact in the margins," Carlson said. "It doesn’t take a whole lot of fear in some investors to create what we saw yesterday."

For an interactive graphic on global vaccine deployment and availability, click here https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access.

The Dow Jones Industrial Average rose 549.95 points, or 1.62%, to 34,511.99, the S&P 500 gained 64.57 points, or 1.52%, to 4,323.06 and the Nasdaq Composite added 223.89 points, or 1.57%, to 14,498.88.

Of the 11 major sectors in the S&P 500, all but consumer staples closed green. Industrials fared best, rising 2.7%.

Second-quarter reporting season has hit full-stride, with 56 of the companies in the S&P 500 having posted results. Of those, 91% have beaten consensus, according to Refinitiv.

Analysts now see annual S&P earnings growth of 72.9% for the April-June period, a significant improvement over the 54% growth seen at the beginning of the quarter.

Halliburton (NYSE:HAL) Co rose 3.7% after a bounce-back in crude prices boosted oilfield services demand, leading the company to post its second consecutive quarterly profit.

Peloton Interactive (NASDAQ:PTON) Inc advanced 6.7% after announcing it would provide UnitedHealth Group (NYSE:UNH)'s fully insured members free access to its live and on-demand fitness classes.

Moderna (NASDAQ:MRNA)'s stock dropped 2% in a volatile session on Tuesday, with the COVID-19 vaccine maker the most heavily traded company on Wall Street ahead of its debut in the S&P 500 on Wednesday. [L1N2OW2AK]

Netflix Inc (NASDAQ:NFLX) shares dipped more than 3% in after- hours trading after its forecast missed estimates.

Shares of Chipotle Mexican Grill (NYSE:CMG) gained over 2% post-market after its earnings and revenue beat consensus.

Advancing issues outnumbered declining ones on the NYSE by a 4.44-to-1 ratio; on Nasdaq, a 3.59-to-1 ratio favored advancers.

The S&P 500 posted 41 new 52-week highs and no new lows; the Nasdaq Composite recorded 45 new highs and 76 new lows.

Volume on U.S. exchanges was 10.62 billion shares, compared with the 10.19 billion average over the last 20 trading days.

Wall Street bounces back on renewed economic optimism
 

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 (15)
Greg Hamilton
OptionsTrader Jul 20, 2021 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cause yesterday's 900pt drop had Nothing to do with next week's Big tech earnings coming out. Buy low, sell high!
Ed Smith
Ed Smith Jul 20, 2021 8:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The only renewed optimism is the fact there will be another 6-8K point market crash. When that happens, I am ready to buy. Are you? The COVID crash was good to me.
Chris Sundo
Chris Sundo Jul 20, 2021 5:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LOVE IT -- it was easy to see ;) __ I did say so, on last Sunday eve ;)
Tai Banh
Tai Banh Jul 20, 2021 5:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Love and said what ? Be specific dude
Kelvin Le
Kelvin Le Jul 20, 2021 3:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Autogenerated article
Tai Banh
Tai Banh Jul 20, 2021 3:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What the pho?
Bradley Jeko
Bradley Jeko Jul 20, 2021 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are people really this stupid? Market sells off one day. Next day it’s “roaring back” as if something significant has changed overnight. Place your bets at the Wall Street casino.
Chris Sundo
Chris Sundo Jul 20, 2021 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
-- algos, man -- The news are made solely to drive the charts. You didn't know yet?
Bruno Silva
Bruno Silva Jul 20, 2021 3:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You must be new here..
Mitchel Pioneer
Mitchel Pioneer Jul 20, 2021 1:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fraudulent, criminally manipulated joke.  Another "rally" that walks a tightrope with zero selling pressure.  Let's get those average holdings in retirement plans even higher, so when the rug gets pulled, the financial devastation will that much greater.
Candy Cane
Candy Cane Jul 20, 2021 1:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Value... stocks.... What's next? Alien invasion stocks? 👽
Joe Messeri
Joe Messeri Jul 20, 2021 1:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The charade keeps going on and on
prabhat ranjan Srivastava
prabhat ranjan Srivastava Jul 20, 2021 1:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yesterday fall in Dow was attributed to rising delta virus cases. Today entire loss is wiped out and you r again here with some other story . Good job. I told you yesterday that market is going to climb.
Larry DeAngelis
Larry DeAngelis Jul 20, 2021 1:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No one jumping out the window today. This is a " bloodbath" . such garbage
Tebogo Phetabosigo
Tebogo Phetabosigo Jul 20, 2021 12:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nasdaq moves like a Bitcoin lately, it has become a frenzy as Bitcoin and has become volatile. where is the ceiling, if i may ask
JAMES CUNHA
JAMES CUNHA Jul 20, 2021 12:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Value" stocks?  So Zoom and Tesla with extremely high P/E Ratios are considered "value" stocks?
Mitchel Pioneer
Mitchel Pioneer Jul 20, 2021 12:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another uninhibited "rally" underway.  Where's the ceiling to limit the "gains?"  Where's the plunge at 10AM?  The reversal at 11AM?  Welcome to the US Ponzi Scheme, greatest financial FRAUD in history, as it resumes the financial defiling of America in broad daylight.
Kat Barry
Kat7 Jul 20, 2021 12:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Concur
John Johnsen
John Johnsen Jul 20, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hohoho
Zeshan Rao
Zeshan Rao Jul 20, 2021 8:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
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