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Wall Street surges to all-time closing high on earnings, economic revival

Stock MarketsJul 23, 2021 08:41PM ET
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© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside 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 gained ground for the fourth straight session on Friday, extending a rally that pushed all three major U.S. stock indexes to record closing highs as upbeat earnings and signs of economic revival fueled investor risk appetite.

The Dow closed above 35,000 for the first time ever.

"We see a continuation of the last couple days. It's roller coaster in reverse. We did the drop first, and we’ve been climbing back to the top ever since," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

Growth and value stocks seesawed for much of the week as market participants weighed spiking infections of the COVID-19 Delta variant against strong corporate results and signs of economic revival.

"There’s push and pull, there’s clearly conflict in the market," Zaccarelli added. "There’s a strong difference of opinion as to whether the future’s bright or whether there are clouds on the horizon."

Market participants now look toward next week with the Federal Reserve's two-day monetary policy meeting and a series of high-profile earnings.

The Fed's statement will be parsed for clues regarding the timeframe for tightening its accommodative policies, although Chairman Jerome Powell has repeatedly said the economy still needs the central bank's full support.

The Dow Jones Industrial Average rose 238.2 points, or 0.68%, to 35,061.55, the S&P 500 gained 44.31 points, or 1.01%, to 4,411.79 and the Nasdaq Composite added 152.39 points, or 1.04%, to 14,836.99.

Of the 11 major sectors in the S&P 500, all but energy closed green, with communications services enjoying the largest gain, rising 2.7%.

Second-quarter reporting season is in full swing, with 120 of the companies in the S&P 500 having reported. Of those, 88% have beaten consensus, according to Refinitiv.

"We’re seeing companies, on average, beat on the top and on the bottom line," Zaccarelli said. "We’re seeing the resilience of the consumer and that’s been the story of the earnings season so far."

Analysts now expect aggregate year-on-year S&P 500 earnings growth of 78.1% for the April to June period, a sizeable increase from the 54% annual growth seen at the beginning of the quarter.

Chipmaker Intel Corp (NASDAQ:INTC) said late Thursday that it still faces supply constraints and provided disappointing guidance. Its stock fell 5.3%.

Moderna (NASDAQ:MRNA) Inc jumped 7.8% after the European Union approved its COVID-19 vaccine for 12- to 17-year-olds.

American Express Co (NYSE:AXP) gained 1.3% after posting second-quarter profit that handily beat expectations on the strength of a global recovery in consumer spending.

Social media firms Twitter Inc (NYSE:TWTR) and Snap Inc (NYSE:SNAP) advanced 3.0% and 23.8%, respectively, on the back of their upbeat results.

Those results bode well for Facebook Inc (NASDAQ:FB), which is due to post second-quarter results next week. Its stock surged 5.3%.

Other high-profile earnings expected next week include Tesla (NASDAQ:TSLA) Inc, Apple Inc (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) Inc, Microsoft Corp (NASDAQ:MSFT) and Amazon.com (NASDAQ:AMZN).

Industrials Lockheed Martin Corp (NYSE:LMT), Boeing (NYSE:BA) Co, Ford Motor (NYSE:F) Co, General Dynamics Corp (NYSE:GD), 3M Co Caterpillar Inc (NYSE:CAT), Chevron Corp (NYSE:CVX) and Exxon Mobil Corp (NYSE:XOM), along with a host of healthcare, consumer goods and others, are also on deck.

Advancing issues outnumbered declining ones on the NYSE by a 1.59-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored advancers.

The S&P 500 posted 82 new 52-week highs and no new lows; the Nasdaq Composite recorded 81 new highs and 136 new lows.

Volume on U.S. exchanges was 9.72 billion shares, compared with the 10.14 billion average over the last 20 trading days.

Wall Street surges to all-time closing high on earnings, economic revival
 

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Comments (14)
Elvis Thomas
Elvis Thomas Jul 31, 2021 7:14AM ET
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business
Kevin Avila
Kevin Avila Jul 24, 2021 1:51AM ET
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Im so glad i dont trade equities lol… I’d have no idea why the market goes up and down… It’s impossible this doesn’t crash in September or there very soon after…
Elvis Thomas
Elvis Thomas Jul 24, 2021 1:51AM ET
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Robert DZ the patterns
Robert DZ the patterns Jul 24, 2021 12:51AM ET
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system will print to oblivion,
Jack Zhang
Jack_A Jul 23, 2021 11:26PM ET
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printing is working!
Stephen Fa
Stephen Fa Jul 23, 2021 10:15PM ET
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Fed pissin liquidity
Sam Gates
Sam Gates Jul 23, 2021 4:30PM ET
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Market is fraud for sure
Asadul Jaman
Asadul Jaman Jul 23, 2021 4:30PM ET
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hi Mane
ALAL Alal
ALAL Alal Jul 23, 2021 4:21PM ET
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aecbh
Mohd Asmadibin Ramli Ramli
Mohd Asmadibin Ramli Ramli Jul 23, 2021 2:31PM ET
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yes
Sean Texsean
Sean Texsean Jul 23, 2021 1:02PM ET
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I'm cashing out. vix here I come. Monday I'll be rich
Paul Richard
Paul Richard Jul 23, 2021 1:02PM ET
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Do not cash out quite yet. More upside to have in 2021.
YouTube Account
YouTube Account Jul 23, 2021 1:01PM ET
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Thank God the pandemic is over and investors no longer feel any fear of the "variants".
Frank Francone
Frank Francone Jul 23, 2021 1:01PM ET
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The pandemic was the only reason for this infinite rally. Covid = free money for all.
Bret Lafrance
Bret Lafrance Jul 23, 2021 12:45PM ET
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it surd seems like the market making trade bots are programmed to release this trash in line with their trading strategy throughout the day in order to drive human traders to make rash trade decisions… the hunters have become very sophisticated, watch your wallet…
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jul 23, 2021 12:32PM ET
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Gold is about to skyrocket. VIX is rising with stocks
Mohd Asmadibin Ramli Ramli
Mohd Asmadibin Ramli Ramli Jul 23, 2021 12:22PM ET
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yed
Mitchel Pioneer
Mitchel Pioneer Jul 23, 2021 12:17PM ET
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Record levels of fraud permeate the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world.  Assume the proper position for the weekend America.
Paul Richard
Paul Richard Jul 23, 2021 12:17PM ET
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Same copy and past posting. You must fancy yourself a trader rather than an investor.
Abhishek Bal
Abhishek Bal Jul 23, 2021 12:17PM ET
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Paul Richard   we all are traders... you included. Don't kid
 
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