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US stock markets hit new highs, Treasury yields rise as a troubled weekend

  • Wall Street closes at a record high
  • Flash PMI data mixed, COVID worries hurt prospects
  • Oil on; US dollars, US Treasury bond yields rise

NEW YORK, Jul 23 (Reuters) – All three major U.S. stock indices closed at record highs on Friday after a rocky week of delta coronavirus rage and cheering for an economic recovery amid U.S. yields -Government bonds rose ahead of a Federal Reserve meeting next week.

Megacap tech stocks and positive corporate earnings helped propel major US indices back up. US Treasury bond yields rose as did the dollar, with investors looking for signs of the US economy’s recovery from the COVID-19 pandemic and when the central bank would provide support for next week’s Federal Reserve meeting the economy will retreat.

“It was definitely a really strong run. At the moment it looks justified given the strong earnings results. We got interest rate stability, which was helpful. Variation we think stocks can go up, “said Jeff Buchbinder, equity strategist at LPL Financial.” We think the second half will be bumpy, but we think the bull market goes on. “

The Dow Jones Industrial Average (.DJI) rose 238.2 points, or 0.68%, to close the week at 35,061.55, while the S&P 500 (.SPX) rose 44.31 points, or 1.01%, to 4,411.79 gained. The Nasdaq Composite (.IXIC) added 152.39 points, or 1.04%, to close at 14,836.99.

The greenback posted a second week of profit on Friday after a few volatile days as risk appetite increased and decreased.

The dollar index, which measures the greenback against a basket of six major currencies, was slightly higher that day at 92.894. That was a 3-1 / 2 month high of 93.194 that was hit on Wednesday.

For the week it rose 0.1% after rising 0.6% earlier. Continue reading

The 10-year government bond yield was hovering 1.3%, or nearly 17 basis points, above Tuesday’s five-month low, but was still at the bottom of a recent range. The benchmark score rose 2.1 basis points to 1.288% after briefly rising above 1.3%.

“We’re ending the week on a very nice trade, and it’s mainly driven by the gains and the gains specifically from stocks that appeal to the consumer, which is not a new story but a story that will add momentum to trading in the industry the second half of the year, “said Peter Kenny, founder of Kenny & Co LLC, the parent company of Strategic Board Solutions and Kenny’s Commentary, a subscription-based political and business newsletter.

After falling at the start of the trading session, oil should end the week slightly higher. Continue reading

Investors expect “things will get better, travel will increase,” said Steve Massocca, managing director of Wedbush Securities. “There are concerns about the Delta variant.”

Massocca added: “If this thesis is jeopardized, it will wane the market.”

Some parts of the United States are reintroducing mask requirements due to new COVID-19 cases, others are not, creating confusion. Continue reading

US business grew at a moderate pace for the second straight month in July amid supply constraints, suggesting a slowdown in economic activity, a report from data firm IHS Markit showed on Friday. Continue reading

Positive corporate earnings helped the stock market. American Express Co (AXP.N) rose 1.7% after posting a profit in the second quarter that exceeded expectations.

Social media companies Twitter Inc (TWTR.N) and Snap Inc (SNAP.N) gained 3.8% and 24.5% respectively after their positive results.

Financial markets have swung from one direction to the other this week as investors scrutinize what the emerging delta variant means for the global economy.

After the S&P 500 stock index posted its largest one-day decline since May on Monday, a day later it posted its largest one-day jump since March. The currency, bond and commodity markets have seen similar fluctuations.

Reporting by Jessica DiNapoli; Additional coverage from Dhara Ranasinghe and Wayne Cole in Syndey; Editing by Ana Nicolaci da Costa, Will Dunham, Pravin Char, Dan Grebler and Raissa Kasolowsky

Our Standards: The Thomson Reuters Trust Principles.

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