New York stocks rose as key economic indicators and corporate quarterly earnings were released.
As of 9:58 a.m. at the New York Stock Exchange (NYSE) on the 26th (Eastern Time), the Dow Jones Industrial Average recorded 32,521.47, up 401.19 points (1.25%) from the battlefield.
The Standard & Poor’s (S&P) 500 index rose 50.86 points (1.28%) to 4,029.59, up 50.86 points (1.28%) from the battlefield, and the Nasdaq index, centered on technology stocks, recorded 11,593.39, up 158.64 points (1.39%) from the battlefield.
Investors kept an eye on economic indicators and corporate performance.
The economic indicators released today were mixed.
The preliminary estimate of US real gross domestic product (GDP) growth in the first quarter of this year (January-March) was lower than the preliminary estimates and analysts’ expectations.
The U.S. Department of Commerce announced tentatively that its seasonally adjusted gross domestic product (GDP) fell 1.5% year-over-year in the first quarter.
This is lower than the 1.4% decline announced earlier and the 1.3% decline compiled by the Wall Street Journal (WSJ).
The GDP in the first quarter turned negative due to the war between Russia and Ukraine and the continuation of the novel coronavirus infection (COVID-19), but experts expect the growth rate to turn to an increasing trend in the second quarter.
The number of claims for unemployment insurance for the week ending on the 21st was 210,000, down 8,000 from the previous week on a seasonally adjusted basis, less than the 215,000 expected by experts.
US economic indicators have been more sluggish than expected in recent years.
In particular, in conjunction with the recent sluggish performance of companies, investor sentiment has deteriorated significantly.
The results of the companies that came out today were better than expected.
US department store Macy’s posted higher-than-expected quarterly net income and sales, and raised its adjusted net profit forecast, raising its stock price by more than 12%.
Following Nordstrom the day before, the brisk performance of department store companies dispelled concerns regarding the earnings of other retailers such as Wal-Mart and Target.
Dollar Tree and Dollar General, which are discount stores, rose more than 17% and 12%, respectively.
However, the stock prices of Nvidia and Snowflake, which announced their earnings following the market close the day before, showed weakness.
Semiconductor maker Nvidia reported better-than-expected sales and net profit, but its share price fell 0.3% as its sales forecast for the second quarter fell short of market expectations.
The stock fell more than 11% as software company Snowflake released a lower-than-expected operating margin forecast.
After the market close of the day, VMware, Costco, Dell Technology, Gap, etc. are expected to report their earnings.
New York stock market experts said the minutes of the Federal Open Market Committee (FOMC) regular meeting the day before were relieved that the Federal Reserve (Fed) will not be more aggressive than expected, but the situation is still fluid.
He added that investors are paying attention to the fact that corporate earnings are being hit by inflation.
“To some extent the market is relieved that the Fed will not tighten more aggressively than expected,” Luke Phillippe, head of investment at SYZ Private Banking, told the Wall Street Journal.
“There is considerable uncertainty regarding what will happen if inflation remains high,” he added.
“We are focused on the bottom line and profitability of companies,” said Shaniel Ramsey of Pictet Asset Management.
Many stable companies are also lowering their forecasts,” he said.
European stocks rose.
Germany’s DAX index rose 1.33% and the UK FTSE index rose 0.49%.
The pan-European STOXX600 index was up 0.63%.
International oil prices continued to rise.
The price of West Texas Intermediate (WTI) for July contract rose 2.4% to $112.97 per barrel, and the price of Brent crude for July rose 1.67% to $115.94 per barrel.
/yunhap news
