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S&P 500 Trickles From Record as Energy, Financials Weigh

Stock MarketsJul 14, 2021 01:37PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 eased from fresh record highs Wednesday as an Apple-led rally in tech was offset by weakness in energy and financials as bond yields slipped on dovish remarks from Federal Reserve Chairman Powell.  

The S&P 500 rose 0.3%, though eased from its intraday record of 4,392.60 The Dow Jones Industrial Average gained 0.2%, or 77 points, the Nasdaq was up 0.1%.

Powell cooled expectations for a sooner rather than later taper of Fed bond purchases. There is still long a way to achieve "substantial further progress" on maximum unemployment, according to Powell's prepared remarks to the House Financial Services Committee.

The remarks arrived on signs that price pressures continue to build as producer inflation surprised to the upside.

Producer Price Indexrose 1.0% on the month, above economists expectations of 0.5%.  

The inflation numbers “have been higher than expected and hoped for, but they're actually still consistent with what we've been talking about,” Powell said in his semi-annual testimony before the House Financial Services Committee. “[I]t's just the perfect storm of high demand and low supply, and it should pass.”

The somewhat dovish remarks kept U.S. bond yields languishing at their lows of the day, adding to concerns that banks will struggle to generate meaningful returns on their loan products in low-rate environment.

Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) reported quarterly results that beat on the top and bottom lines, while Bank of America (NYSE:BAC) missed on the bottom line, sending its share price down 3%.

Energy also kept the broader market gains in check as oil prices fell sharply as OPEC and its allies continue to struggle to reach a consensus on production levels.

UAE Energy Minister Suhail Al Mazrouei said Wednesday that an agreement had not been reached yet with Opec+ on an extension of an oil supply deal.

The news overshadowed positive data for energy prices showing that weekly U.S. crude supplies fell by 7.9 barrels last week.

Tech, however, supported the broader market, led by rally in Apple (NASDAQ:AAPL) to record highs on a Bloomberg reports that the tech giant is ramping its iPhone production by 20% amid expectations for a jump in demand.

The brighter outlook for iPhone demand sparked a bid in the suppliers tied to iPhone supply chain including Taiwan Semiconductor Manufacturing (NYSE:TSM), Jabil Circuit (NYSE:JBL) and Micron Technology (NASDAQ:MU).

Other large cap tech stocks including Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT were also in the green.

In political news, Treasury Secretary Janet reportedly has no plans to revive regular dialogue with China, preferring to stick with the suspensions imposed by former U.S. President Donald Trump.

S&P 500 Trickles From Record as Energy, Financials Weigh
 

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Comments (10)
Semih Unalan
Semih Unalan Jul 14, 2021 5:11PM ET
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Sack the traitor Bullard.
Mark Kim
Mark Kim Jul 14, 2021 4:29PM ET
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Just glad I didn't sell Apple at all while it was lagging over the last couple of months.
Mitchel Pioneer
Mitchel Pioneer Jul 14, 2021 3:49PM ET
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Here come savvy "investors" to load up "in late trade."  Can't have a two day loss in the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world.
Yama Fazel
Yama Fazel Jul 14, 2021 3:04PM ET
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Powell doesnt have ability for this job. He should resign
Vukota Pejovic
Vukota Pejovic Jul 14, 2021 3:04PM ET
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Powell have ability... but BIDEN's administration don't have.
Jody Darden
Jody Darden Jul 14, 2021 3:04PM ET
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Vukota Pejovic  Fulton County News
Ricardo Diogo
Rcd72 Jul 14, 2021 2:52PM ET
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inflation is going to erase economy growth...real GDP is going to be nearly 0 or negative...
Stan Smith
Stan Smith Jul 14, 2021 2:28PM ET
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Its a trickle now...wait til the dam breaks.
Jerry Balentine
Jerry Balentine Jul 14, 2021 2:28PM ET
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The fed and the government are useless. Anybody can say, hey lets print trillions of dollars and give everyone some regardless of whether they work or not. Lets help the little man, is the call of communist everywhere. Ok, I give up, where can I get my check for laying around and doing nothing.
Jouni Matero
Jouni Jul 14, 2021 2:12PM ET
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"have been higher than expected and hoped for, but they're actually still consistent with what we've been talking about". Funny, whole this time I've understood they've been talking about max 2% inflation and not a Single word of 3-4%,which that too I guess is less than real numbers. Well, it must be just me not understanding..
William Bailey
William Bailey Jul 14, 2021 2:00PM ET
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Powell is a scam artist
Todd Gray
Todd Gray Jul 14, 2021 1:54PM ET
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liberal writers always use verbs that slant to their bias. they'll say the Dow "surges", when it was only 10 points. Or, the Dow drops 100 points, and they call it just a "trickle". it's inverted reality.
TheEnd IsNigh
TheEnd IsNigh Jul 14, 2021 1:54PM ET
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Depends on whose perspective you are speaking from. Crazy people don't usually know they're crazy, either. They think the rest of us live in a strange world. Same logic applies here.
 
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