Stocks push higher on Wall Street, on track for weekly gain

Friday, July 23, 2021 | Damian J. Troise, AP Business Writer

In this June 16, 2021, The "Fearless Girl" statue faces the New York Stock Exchange. Stocks are opening higher on Wall Street Friday, July 23, keeping the market on track for a weekly gain following a big drop at the beginning of the week. (AP Photo/Richard Drew, File)

Stocks rose on Wall Street Friday, putting the market on track for a strong finish in a week that opened with a stumble.

The S&P 500 index rose 0.9% as of 12:50 p.m. Eastern time and is hovering above the record high it set early last week. The Dow Jones Industrial Average rose 199 points, or 0.6%, to 35,022 and the Nasdaq rose 0.9%.

The major indexes are all on track to close the week higher, essentially brushing off a sharp sell-off on Monday that trimmed 1.6% from the benchmark S&P 500.

Communications and technology companies led the broad gains. Banks rose as bond yields edged higher. Higher yields allow banks to charge more lucrative interest on loans.

The yield on the 10-year Treasury rose to 1.28% from 1.26% late Thursday. The benchmark yield has recovered from its lows earlier in the week, but is still trading at relatively low levels given that the economy is in a recovery.

Energy companies lagged the broader market as crude oil prices remained relatively unchanged.

The sell-off early in the week was partly due to jitters about the virus pandemic and whether variants rapidly spreading across the country and world will crimp the economic recovery. Stocks have been making steady gains, but trading has been choppy on a week-to-week basis as investors try to figure out how the recovery will continue to play out and what the economy might look like after the pandemic recedes.

Wall Street is also looking further ahead, though 2021 and into 2022, and trying to gauge economic growth following the sharp rebound early this year. A key concern remains the potential for “stagflation,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. That's when inflation continues rising while economic growth slows or stalls. Most analysts expect growth to continue moderating as the pandemic fades and the U.S. government and Federal Reserve ease their support.

“How do we get from hypergrowth to stagflation, how do you price that in?” he said. “That's a key overhang.”

Investors are also monitoring the latest round of corporate earnings and forecasts for a clearer picture of how companies are faring as people resume activities that were normal before the pandemic shut down businesses, workplaces and social gatherings. The reports have so far been mostly solid.

American Express jumped 2.2% as spending at restaurants, shops and entertainment venues fueled a second-quarter revenue surge and solid profits. Twitter rose 3.7% after blowing past Wall Street’s second-quarter profit forecasts on growing advertising demand.

Snap, the parent company of social media app Snapchat, soared 24.5% after reporting results that were much better than expected.

Intel, which also reported solid second-quarter earnings, fell 6.5% over concerns that supply chain problems could hurt the company. Supply problems are causing a chip shortage worldwide that is impacting a variety of industries while demand continues rising.

Boston Beer Co., which brews Samuel Adams, plunged 24.2% after reporting weak second-quarter financial results as sales of its hard seltzer fizzled.

European stocks rose, while stocks in Asia were mixed.

7 Stocks That Can Help You Profit From Summer Shortages

One of the lingering impacts of the Covid-19 pandemic is the supply chain disruptions that continue to bedevil many sectors. By now, every investor is aware of the global chip shortage that is disrupting many sectors that were projected to have strong growth in 2021.

But there are many more sectors that are being affected by supply chain disruptions. And this affects everything from big-ticket items like cars to everyday items like pet food and even bacon.

The focus of this special presentation is seven companies that stand to benefit from the current disruption in the supply chain. All of these companies delivered strong gains in 2020. Some of them have weakened in 2021, but that was before the full extent of the supply chain weakness was discovered.

As the economy reopens, the shortage of items is likely to continue and become much more notable. When they do, many of these stocks may get overpriced. That’s why now is the time to get in on these stocks that can help you work the supply chain in your favor.

View the "7 Stocks That Can Help You Profit From Summer Shortages".

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.