Wall Street swings higher but ASX set to open in the red
Stocks were muted in afternoon trading on Wall Street on Thursday (US time) as investors reviewed the latest corporate earnings and a surprise increase in the number of Americans filing for unemployment benefits.
In late trade, the S&P 500 is up 0.2 per cent, the Dow Jones has added 0.2 per cent and the Nasdaq has jumped by 0.4 per cent. All three major indexes are still on pace to end the week higher after strong gains on Tuesday and Wednesday. Despite the positive lead, the Australian sharemarket is set to start the day lower, with futures at 5.03am AEST pointing to a fall of 16 points or 0.2 per cent, at the open.
Wall Street is on track for its third-straight session of gains. Credit:NYSE
The Labour Department reported that unemployment claims rose last week to 419,000, the most in two months and more than economists were expecting. Economists characterised last week’s increase as most likely a blip caused by some one-time factors and partly a result of the inevitable bumpiness in the week-to-week data.
That said, investors have been nervous about how well the economy is recovering after the pandemic along with lingering concerns that the delta variant of COVID-19, which is spreading rapidly across the country, may cause businesses and cities to put restrictions into place yet again.
The 10-year Treasury note was trading at a yield of 1.25 per cent down from 1.28 per cent the day before. While the benchmark yield has recovered from its low yields earlier in the week, it continues to trade at relatively low levels given that the economy is in a recovery.
The lower yields weighed on banks, which can charge higher interest on loans when yields rise. JPMorgan Chase fell 1.1 per cent and Bank of America fell 1.2 per cent.
Big technology companies helped counter the dip from banks. Apple rose 1.3 per cent and Microsoft rose 1.3 per cent.
Homebuilders were mostly lower after the National Association of Realtors said sales of previously occupied US homes rose in June after a four-month pullback. The June data also showed the median US home price hit a record high last month, reflecting an increase in sales of higher-end homes, while sales of properties under $US150,000 ($203,000) declined.
The sharp rise in home prices, even with mortgage rates near historic lows, has stoked worries that many would-be buyers may be priced out of the market. Beazer Homes USA fell 1.9 per cent and D.R. Horton slid 1.8 per cent.
Company earnings reports are continuing to roll out. Texas Instruments fell 4.8 per cent for the biggest drop in the S&P 500 after its results disappointed investors. The chip maker also gave a weak outlook for the second half of the year.
Union Pacific rose 1.4 per cent after the railroad said its profits jumped 59 per cent from a year earlier, helped by a 22 per cent increase in cargo carried compared to a year earlier. The results also beat analysts’ expectations. Domino’s Pizza rose 14.2 per cent after its results also surpassed estimates.
Intel and Twitter are among the companies that will report their results after the closing bell.
AP
0 Response to "Wall Street swings higher but ASX set to open in the red"
Post a Comment