Thanks to the strong performance from the telecom stalwarts, Verizon and AT&T, as well as from S&P, Wall Street was able to close on a high last Friday. A United States manufacturing report that came in last week, exceeded expectations.
A weak report from General Electric, however, limited the gains. The company that saw a 1.6% slide blamed it on the decreased demand for new gas, oil, and transportation equipment. Rival Honeywell also reported a 2.6% drop.
For the first time in more than a year, DOW and S&P broke to all-time records. The industrial average of Dow Jones (.DJI) rose 53.62 points (0.29% to 18570.85), and that of S&P 500 (.SPX), achieved an increase of 9.86 points (0.46% to 2175.03). The Nasdaq Composite (.IXIC) gained 26.26 points (0.52% to 5100.16). S&P 500 has so far gained 6% this year, clearly indicating that the Brexit has not affected it. It has posted no new lows, and so far has posted 34 new 52-week highs. Last week also saw the S&P 500 companies reporting an earnest 2nd-quarter earnings. According to Thomson Reuters, it is expected to decline only by 3%. Compared to the 4.5% drop that was estimated at the beginning of the month, this is less severe. This week will see results from 40% of the S&P 500s, including reports from tech giants.
Nasdaq Composite recorded 20 new lows and 98 new highs.
High-dividend paying groups, telecoms, SPLRCL defensive, and utilities .SPLRCU, all helped the ten sectors to end on a high note, last Friday. By a 2.01:1 ratio, the declining issues were outnumbered by the advancing ones. The advancers were favored on Nasdaq as well, with a 1.88:1 ratio.
AT&T, after its results, achieved a 1.4% climb. Verizon, Yahoo's core business front-runner, saw an increase of 1.3%. Yahoo closed at 1.4%.
According to Wells Capital Management's Chief Investment Strategist, Jim Paulsen, the better economic reports suggest that the growth is quickening. Peter Kenny, Global Markets Advisory Group's Senior Market Strategist, said that the market is well past the subsequent rebound that happened as a result of the Brexit fallout. As of now, oil is range-bound and well-contained, the 2 variables that played a massive role in triggering volatility.
In the US exchanges, over the past twenty sessions, about 5.6 billion shares changed hands. All eyes are now on the Federal Reserve's meeting scheduled this week. Investors will be looking for clues as to when the US Central Bank might be increasing the interest rates.